In terms of risk, preferred stock is safer than common stock because it has a prior claim on assets and income. 1) False 2) True Question 6 (Mandatory) (7.14286 points) Preferred stock is referred to as a hybrid security because it has many characteristics of both common stock and bonds. 1) True 2) False Preferred stock is riskier than long-term debt because its claim on assets and income come after those of bonds. 1) True 2) False Question 8 (Mandatory) (7.14286 points) Preferred stock valuation usually treats the preferred stock as a 1) long-term bond 2) perpetuity 3) capital asset 4) common stock