Preferred stock accurately compare to common stock

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Reference no: EM131558461

How does preferred stock accurately compare to common stock?

A. One of the advantages to the firm associated with preferred stock financing rather than common stock financing is that dividends paid on preferred stock can be written off against earnings.

B. Preferred stock provides slightly steadier and more reliable income to investors than common stock.

C. One of the advantages to the firm of financing with preferred stock is that it is normally distributed only to common shareholders and requires no investment banker involvement.

D. Preferred stock is much harder to value than is common stock since there are so many additional different parameters to consider when evaluating preferred stock.

Reference no: EM131558461

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