10. Preferred stock Aa Aa 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 lists several characteristics of preferred stock. Determine which of these characteristics are consistent with debt securities and which are consistent with common stock Characteristic Some issues have a stated maturity date Failure to pay its dividend does not send the firm into bankruptcy Debt Common stoc Consider the case of Cute Camel Woodcraft Company: Cute Camel Woodcraft Company pays an annual dividend rate of 12.00% on its preferred stock that currently returns 16.08% and has a par value of $100.00 per share. The preferred stock issue does not mature, and computes its annual dividend as the product of its dividend rate and its par value. What is the current market value of Cute Camel's preferred stock? O $102.99 per share O $74.63 per share O $80.60 per share O $65.67 per share Suppose that due to high inflation, interest rates rise and pull the preferred dividend yield to 23.32%. Then the value of Cute Camel's preferred stock will returns) and security values are . This is because interest rates (and security related