The valuation of common stock with zero growth is similar to the valuation of preferred stock.

Name: The valuation of common stock with zero growth is similar to the valuation of preferred stock.
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Both stocks have a constant dividend stream, so their valuations are based on the discounted value of that dividend stream. The difference is that preferred stock typically has a fixed dividend rate, while common stock may have variable dividends depending on the company's earnings.

The Valuation of Common Stock with Zero Growth Is Similar