Preferred stock is similar to a bond because:

it has no maturity date.

preferred dividends do not reduce a firm's taxes.

it pays a fixed periodic amount.

it represents ownership in a firm. If Kalium Motors has an EBIT of $$28$ million, interest of $$8$ million and is taxed at an average rate of $32\%,$ what is its net income?

$$20$ million

$$19$ million

$$13\mathrm{.}6$ million

$$6\mathrm{.}4$ millionTreasury stock represents stock that:

a firm has purchased back from investors.

is being held to purchase preferred stock.

a firm has sold to the U$.$S$.$ Treasury Department.

is being held to purchase treasury securities$.$Treasury stock represents stock that:

a firm has purchased back from investors.

is being held to purchase preferred stock.

a firm has sold to the U$.$S$.$ Treasury Department.

is being held to purchase treasury securities$.$