How do I value this preferred stock in my EV calculation

CFA Level II Equities
#1

Hi,

How should I value the following preferred stock in my EV calculation?

Series J 8.38% cumulative redeemable preferred stock, 1,000,000 shares authorized, 796,948 issued and outstanding with a liquidation value of $39,847.

The balance sheet shows $42,748 against the above entry. I am not sure if I should use the liquidation value, the balance sheet number or some other value in my Enterprise Value calculation for this company.

Thanks

#2

You need market value, so liquidation value makes more sense.