Preferred stock can provide a financing alternative for some firms when market conditions are such that the firms cannot issue either pure debt or common stock at any reasonable cost.

Question

Quizplus · Accepted Answer

Preferred stock can offer a hybrid form of financing for firms that may be more attractive than issuing pure debt or common stock, especially in times when interest rates are high or market conditions are volatile.

Preferred Stock Can Provide a Financing Alternative for Some Firms