The Cost of Preferred Stock Is Equal to

question 47

Multiple Choice

The cost of preferred stock is equal to

• A) the preferred stock dividend divided by market price.
• B) the preferred stock dividend divided by its par value.
• C) (1 - tax rate) times the preferred stock dividend divided by net price.
• D) the preferred stock dividend divided by the net market price.

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Definitions:

Embryonic Germ Layer

One of the three primary layers of cells (endoderm, mesoderm, ectoderm) in the very early embryo that gives rise to all the body's organs and tissues.

Ectoderm

The outermost layer of cells or tissue of an embryo in early development that gives rise to the formation of the skin and nervous system.

Malignant Tumor

A type of tumor that invades surrounding tissues, is capable of spreading to other parts of the body, and can be life-threatening.

Connective Tissue

A category of body tissue that plays a role in supporting, connecting, or distinguishing different organs and tissue varieties.