Q1. Which of the following statements is most accurate regarding a firm’s cost of preferred shares? A firm’s cost of preferred stock is: A) the market price of the preferred shares as a percentage of its issuance price. B) approximately equal to the market price of the firm’s debt as a percentage of the market price of its common shares. C) the dividend yield on the firm’s newly-issued preferred stock.
Q2. The after-tax cost of preferred stock is always: A) less than the before-tax cost of preferred stock. B) equal to the before-tax cost of preferred stock. C) higher than the cost of common shares.
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发表于 2009-1-22 09:42
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