Complete the following sentences with the correct items. Preferred stock is a unique security with a mix of debt and equity like features. Preferred stock is considered risky than common stock as it has dividend priority over common stock. Additionally, preferred stock holders oftentimes do not benefit from price appreciation of the stock as they receive a fixed dividend. This information would suggest that preferred stock is to value than common stock. (a) less; easier (b) less; harder (c) more; easier (d) more; harder 8. You are considering buying stock in two companies both currently priced at $100. You expect company A to have a stock price of $109 at the end of the year and pay no dividend. If your discount rate is 10%, the value of company A today is You expect company B to have a stock price of $90 at the end of the year and pay a $25 dividend at the end of the year. If your discount rate is 10%, the value of company B today is Based on the above information, you should buy as it is underpriced. (a) $90.08;$81.81; company A (b) $101.05;$104.54; company B (c) $99.09;$104.54; company B (d) $99.09;$81.81; company A