The Cost of Preferred Stock to a Firm Must Be

question 25

True/False

The cost of preferred stock to a firm must be adjusted to an after-tax figure because 50% of dividends received by a corporation may be excluded from the receiving corporation's taxable income.

---

Definitions:

Person-environment Fit

A concept in psychology and organizational behavior that describes how well an individual's skills, needs, and values match their work environment.

Science

The systematic study of the structure and behavior of the physical and natural world through observation and experimentation.

Curse of Knowledge

A cognitive bias where better-informed people find it extremely difficult to think about problems from the perspective of lesser-informed people.

Programming Computers

The process of designing, writing, testing, debugging, and maintaining the source code of computer programs.