Preferred stock is not a common source of financing for most firms. However, it should be ignored as a potential source of capital. Spend some time researching (the Harrison LRC is a great resource) preferred stock and then answer the following questions.
- What is preferred stock and why is it beneficial to corporations?
- What are the disadvantages of issuing preferred stock from the companyAcs perspective?
- List a few firms that use preferred stock in their capital structure?