Which of the following statements concerning preferred stock is MOST correct? Preferred stock is valued the same as zero coupon bonds because the cash flow patterns are similar Preferred stock dividends are calculated as a percentage of common stock dividends, although the preferred stock dividends must be paid first. Preferred stock dividends are typically the same each year, allowing a preferred stock to be valued as a perpetuity. If a corporation issues 4% preferred stock with a par value of $100, the divided will increase by 4% per year. What provision entities the common shareholder to maintain the proportionality share of ownership in a firm? the proportionality clause the feature the preemptive right the cumulative feature Common stock valuation can be based on the present value of future dividends or alternatively on the present value of the firm's future quarterly net income. True False Perrine Industrial Inc. just paid a dividend of $5 per share. Future dividends are expected to grow at a constant rate of 7% per year. What is the value of the stock if the required return is %? $55.56 $65.87 $33.44 If the expected growth rate for dividends is zero, then the value of common stock will be equal to the current dividend. True False