AGE h 08: Assignment - Basic Stock Valuation Attempts Keep the Highest 73 10. 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 corrumon equity. The following table lists several characteristics of preferred stock. Determine which these characteristics are consistent with debt securities and which are consistent with common stock Characteristic Debt Common stock Most issues pay quarterly dividends. Some issues are perpetual, and do not mature. Consider the case of Cute Camel Wooderaft Companys Cute Camel Woodcraft Company pays an annual dividend rate of 11.00% on its preferred stock that currently returns 14,74% and has a par value of $100.00 per share. The preferred stock issue does not mature, and computer its annual dividend as the product of is dividend rate and its par value What is the current market value of Cute Camal's preferred stock? 0 5:02.99 per share $74.63 per share 563.67 per share $80.60 per share 10. 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 lists 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 Characteristic Most issues pay quarterly dividends. Some issues are perpetual, and do not mature. Consider the case of Cute Camel Woodcraft Company: Cute Camel Woodcraft Company pays an annual dividend rate of 11.00% on its preferred stock that currently returns 14.74% 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 vahae What is the current market value of Cute Camel's preferred stock? $102.99 per share 574.63 per share $65.67 per share 580.60 per share Suppose that due to high inflation Interest rates rise and pull the preferred dividend yield to 2.279 Then the value of Cute Camel' preferred stock to This because interest rates and security returns and security values are Grade It Now Sly & Continue o a toh