Is preferred stock more like bonds or common stock

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Question: 1. Is preferred stock more like bonds or common stock? Explain.

2. What effect does the trend in stock prices (subsequent to issue) have on a firm's ability to raise funds through (a) convertibles and (b) warrants?

3. If a firm expects to have additional financial requirements in the future, would you recommend that it use convertibles or bonds with warrants? What factors would influence your decision?

Reference no: EM131525449

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