Which of the following statements concerning preferred stock is most correct?

Which of the following statements concerning preferred stock is most correct?

a. If a corporation issues 4% preferred stock with a par value of $100 the dividend will increase by 4% per year.

b. Preferred stock is valued the same as zero coupon bonds because the cash flow patterns are similar.

c. Preferred stock dividends are typically the same each year allowing a preferred stock to be valued as a perpetuity.

d. Preferred stock dividends are calculated as a percentage of common stock dividends although the preferred stock dividends must be paid first.