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5) Which of the following statements concerning prererred stocK IS MUST correct! A) Preferred stock is valued the same as zero coupon bonds because the

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5) Which of the following statements concerning prererred stocK IS MUST correct! A) Preferred stock is valued the same as zero coupon bonds because the cash flow patterns are similar. B) If a corporation issues 4% preferred stock with a par value of $100, the dividend will increase by 4% per year C) Preferred stock dividends are typically the same each year, allowing a preferred stock to be valued as a perpetuity of the lock your required to D) Preferred stock dividends are calculated as a percentage of common stock dividends, although the preferred stock dividends must be paid first. 6) Stimpson Inc. preferred stock pays a $.50 annual dividend. What is the value of the stock Si if your required rate of return is 10%? A) $.05 B) $.50 C) $5.00 out types of payments that cou tertomon dividends, income D) $50.00 to the other payments mentioned where ment in terms of the order of payment if he d normal and greened dividends. you a common didend doen

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