Preferred stock is a hybrid security because of which of the following? Par Value Stock price Perpetual preferred dividend Time to maturity Question 5 (1.75 points) When you purchase a bond, the actions of the firm regarding the bond are limited by the language of the bond covenant. True False Question 6 (1.75 points) Dividends are the best way to value a firm because all firms pay dividends. True False Undervalued stocks are priced at a good purchase point. True False Question 10 (1.75 points) You estimated the present value of CAKE to be $85 per share. CAKE is currently trading at $120 per share. Currently CAKE is undervalued. True False Question 11 (1.75 points) Your firm is interested in a project with a payback period of 4 years. The firm typically accepts projects that payback in three years or less. Based on this information, the firm should reject the project. True False Question 12 (1.75 points) The NYSE became a publicly traded firm in 2006. True