13-10 Preferred stock Preferred Stock- Stock that takes priority over common stock in regards to dividends Net worth - Book value of common shareholder's equity plus preferred stock Floating-Rate Preferred - Preferred stock paying dividends that vary with short term interest rates Irwin/McGraw-Hill CThe McGraw-Hill Companies, Inc, 2001©The McGraw-Hill Companies, Inc.,2001 13- 10 Irwin/McGraw-Hill Preferred Stock Preferred Stock - Stock that takes priority over common stock in regards to dividends. Net Worth - Book value of common shareholder’s equity plus preferred stock. Floating-Rate Preferred - Preferred stock paying dividends that vary with short term interest rates