burnsy562000

To my understanding, value of preferred share is determined by the fixed coupon being paid on it and the current market interest rate + risk premium. Market price of preferred shares is determined in a similar way as that of a fixed income security. It should have nothing to do with Cost of Equity, Common Dividend payments or the Current Price of common stock.

To answer 2nd one:

COGS are expenses that you deduct from Revenues to get your Gross Income. And SG&A are expenses that you deduct from your Gross Income to get your Operating Income.

So, if you allocate depreciation to your SG&A, it will only affect your Operating Income. And if allocated to COGS, it will affect your Gross Income and your Operating Income.

I guess, this should not be difficult. Just put it down on paper in that sequence, and you will understand it.