Attempts Average/2 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 lists various characteristics of preferred stock. Determine which of these characteristics is consistent with debt and which is consistent with equity Debt Equity Characteristics Dividends are fixed. No tax adjustments are made when calculating the cost of preferred stock Consider the case of Tamin Enterprises: At the present time, Tamin Enterprises does not have any preferred stock outstanding but is looking to include preferred stock in its capital structure in the future. Tomin has found some institutional Investors that are willing to purchase its preferred stock issue provided that it pays a perpetual dividend of 512 per share. If the investors pay $98.90 per share for their investment, then Tomin's cost of preferred stock (rounded to four decimal places) will be Grade It Now Save & Continue Contigue without saving