Preferred Stock Ratio

Preferred stock ratio

Preferred stock at par value divided by total capitalization, which gives the portion of capitalization that consists of preferred stock.

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preferred stock ratio

The proportion of preferred stock, valued at par, in a firm's total capitalization. The preferred stock ratio is calculated by dividing the par value of a firm's outstanding preferred stock by its net worth and long-term debt.

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Preferred Stock Ratio

A ratio of a publicly-traded company's preferred stock to its total capitalization. In the ratio, the preferred stock is valued at par. The preferred stock ratio measures how much of a company's capitalization consists of preferred stock.