A common stock which pays a constant dividend can be valued as if it were:
A) a corporate bond.
B) stock paying a growing dividend.
C) a preferred stock.
D) a discount bond.

Name: A common stock which pays a constant dividend can be valued as if it were: A) a corporate bond. B) stock paying a growing dividend. C) a preferred stock. D) a discount bond.
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Question

Quizplus · Accepted Answer

A common stock that pays a constant dividend can be valued similar to a preferred stock, as both pay a fixed dividend.

A Common Stock Which Pays a Constant Dividend Can Be