About Lesson
a. A non-callable and non-convertible preferred share is the perpetual preferred share that cannot be converted into any other security either.
b. This share is very similar to the equity share because of its perpetual nature, except that it carries a fixed rate of return. The dividends on such stocks are stated as a fixed yield.
c. The value of such securities is calculated just like the present value of a perpetuity. Thus, the value of a non-callable and non-convertible preferred share is: