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. Characteristic Debt Common stock Its dividends are fixed in amount. It has a par, or face, value. a Consider the case of Cold Goose Metal Works: Cold Goose Metal Works pays an annual dividend rate of 17.60% on its preferred stock that currently returns 23.58% 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 value. What is the current market value of Cold Goose's preferred stock? O $74.64 per share O $80.61 per share O $65.68 per share O $103.00 per share Suppose that due to high inflation, interest rates rise and pull the preferred dividend yield to 34.19%. Then the value of Cold Goose's preferred stock will . This is because interest rates and security returns) and security values are related. to