1. Preferred stock Preferred stock is often called a hybrid security because it has some characteristics that are typical of debt and others that are typical of common equity. The following table liests several characteristics of preferred stock. Determine which of these characteristics are consistent with debt securities and which are consistent with common stock Debt Common Stock O Characteristic Its dividends are fuced in amount. It has a pat, or face, value. Failure to pay its dividend does not send the firm into bankruptcy, 0 Purple Digeon Bird Seed Company currently pays preferred stockholders a dividend of $1.50 per share and common stockholders dividend of $1.00 per share. If the firm wants to raise the common stock dividend to $2.00 per share it will also have to raise the preferred stock dividend to $2.00 per share. Which type of provision does Purple Pigeon have in its preferred stock agreements? O Asinking fund provision O A call provision A participating provision