3. The cost of preferred stock Preferred stock is a hybrid security, because it has some characteristics typical of debt and others typical of equity. The following table inte various characteristics of preferred stock. Determine which of these characteristics la consistent with dubt and which is consistent with equity. Debt Equity Characteristics Has a par, or face, value Usually has no specified maturity date. @ o Consider the case of Galbraith Enterprises At the present timo. Galbraith Enterprises does not have any preferred stock outstanding but is looking to include preferred stock in its capital structure in the future. Galbralth has found some institutional Investors that are willing to purchase its preferred stock towe provided that it paysa perpetual dividend of $12 per share. If the investors pay $98.00 per share for their investment, then Galbraith cost of preferred stock rounded to four decimal places will be