. The cost of preferred stock Preferred stock is a hybrid security, because it has some characteristics typical of debt and others typical of equity. The following table lists various characteristics of preferred stock. Determine which of these characteristics is consistent with debt and which is consistent with equity. Consider the case of Ferro Enterprises: At the present time, Ferro Enterprises does not have any preferred stock outstanding but is looking to include priferred stock in its copital structure in the future. Ferro has found some imbtutional investors that are willing to purchase its preferred stock issue provided that it pays o perpetual dividend of $12 per share, it the investors pay 598.90 per share for their investment, then ferro's cost of prefecred stock (rounded to four decimal places) will be