A bond that pays interest forever and has no maturity is a perpetual bond. In what respect is a perpetual bond

Question

can someone help me with this?

Answer 1

I am not sure about the "no-growth common stock", because common stock should have growth possibilities.  The preferred stock in calculation would be valued in the same manner to the perpetuity.  The yield or dividend divided by the discount rate or required return.   A nonconvertible preferred would have the similar, but not the same properties as a perpetual bond.  As for your other question the valuation would be determined by the type of preferred.  (Convertible, callable, cumulative, participating, adjustable-rate)