Many preferred stocks are treated as ____ in determining their values.
A) fixed assets
B) perpetuities
C) convertible securities
D) constant growth securities

Question

Quizplus · Accepted Answer

Preferred stocks are often considered perpetuities, meaning that they have no set maturity date and provide a steady stream of income to the investor. This is because preferred stocks typically pay a fixed dividend to investors, similar to the interest payments on a perpetuity.

Many Preferred Stocks Are Treated as ____ in Determining Their