Discussion question

Easy Company, a corporation, is considering a variety of equity financing methods. This company routinely pays dividends to its shareholders. It has the option to issue common stock, preferred stock, or a combination of the two. 

Considering that equity financing requires that the stock offerings are attractive to investors:

• Compare and contrast the variety of preferred stock and the impact each has on the payment of dividends.
• Propose a stock offering portfolio that would be attractive to investors.
• Be sure to justify your proposal and include specific examples.