Q895
Preferred stocks are also classified as
A.
intrinsic preference
B.
perpetuities
AnswerC.
extrinsic preference
D.
weak preference
Answer: Option B
Solution
Answer: Option B
Solution:
Preferred stocks are also classified as perpetuities. Perpetuity refers to an infinite amount of time. In finance, perpetuity is a constant stream of identical cash flows with no end.