The ________ is utilized to value preferred stock.
A) capital asset pricing model
B) arbitrage pricing model
C) zero-growth model
D) Black-Scholes model

Question

Quizplus · Accepted Answer

The zero-growth model is specifically designed for valuing preferred stock, which typically pays a fixed dividend that does not increase over time. Other models like the capital asset pricing model, arbitrage pricing model, and Black-Scholes model are not as applicable to valuing preferred stock.

The ________ Is Utilized to Value Preferred Stock