4. Cost of preferred stock Aa Aa Preferred stock is a hybrid security, because it has some characteristics typical of debt and others typical of equity. The following table lists various characteristics of preferred stock. Determine which of th consistent with debt and which is consistent with equity. ese characteristics is Characteristics Has a par, or face, value. Usually has no specified maturity date. Debt Equity Consider the case of Turnbull Enterprises: At the present time, Turnbull Enterprises does not have any preferred stock outstanding but is looking to include preferred stock in its capital structure in the future. Turnbull has found some institutional investors that are willing to purchase its preferred stock issue provided that it pays a perpetual dividend of $14 per share. If the investors pay $134.26 per share for their investment, then Turnbull's cost of preferred stock (rounded to four decimal places) wil be DELL