A preferred stock pays an annual dividend of 3 dollars a share and competitive yields are 5%. A call feature is added at 50 dollars in three years. Its market price is 50 dollars. Which of the following should you select? ______
A. Buy
B. Sell
C. Short Sale
Do nothing
Some preferred stocks are not perpetual and must be retired at some specified time period. ()
Earnings per preferred share is a ratio of earnings divided by preferred dividend requirements. ()
In general, the size of issuing preferred stock cannot be comparable to that of bond issuing. ()