When valuing a preferred stock,the type of security that we treat the preferred stock like,for valuation purposes,is

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Preferred stocks are typically treated like perpetuities for valuation purposes because they offer a fixed dividend payment that continues indefinitely, similar to a perpetuity. Bond valuations are based on fixed coupon payments with a defined maturity, which is not applicable to preferred stocks. Common stocks do not have a fixed dividend payment and are not appropriate for valuing preferred stocks.

When Valuing a Preferred Stock,the Type of Security That We