A Theoretical Model for Valuing Preferred Stock
基于Black-Scholes期权对冲方法，构建了考虑股息可能被省略的优先股价值模型，推导出累积和非累积优先股在不同情境下的精确估值公式，发现其价值与之前认为相似的无风险或风险永续债券显著不同。
This paper develops a model of preferred stock value which includes the possibility of dividends on the preferred stock being omitted. The analytical framework used is based on the option-hedging methodology of Black and Scholes. Precise valuation formulae are obtained for cumulative and noncumulative preferred stock in a variety of contexts. The values obtained are quite different from those for either riskless or risky perpetual bonds, which have previously been proposed as being similar to preferred stock.