in what ways is preferred stock like long term debt in what ways is it like equity 665367

1. In what ways is preferred stock like long term debt? In what ways is it like equity?

2. Why are money market securities sometimes referred to as “cash equivalents”?

3. Suppose investors can earn a return of 2% per 6 months on a Treasury note with 6 months remaining until maturity. What price would you expect a 6 month maturity Treasury bill to sell for?

4. Find the after tax return to a corporation that buys a share of preferred stock at $40, sells it at year end at $40, and receives a $4 year end dividend. The firm is in the 30% tax bracket.