The cost of preferred stock:
A) should be adjusted for taxes when computing WACC.
B) is ignored by all firms when computing WACC.
C) is generally calculated using the overall firm's beta.
D) is equal to the stock's dividend yield.
E) is set equal to the pretax cost of debt since it is a fixed income security.
D) is equal to the stock's dividend yield.
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Which of the following is NOT an element of the disaster risk decision tree model?
A) the buyer's financial loss incurred in a supply cycle if supplier i were disrupted B) the marginal cost of managing a supplier C) the buyer's financial loss incurred in a supply cycle if all suppliers were disrupted D) the probability of a "super-event" that would disrupt all suppliers simultaneously E) the probability of a "unique-event" that would disrupt only one supplier
Debentures are bonds that mature in installments at regular intervals
Indicate whether the statement is true or false
Which of the following statements is CORRECT?
A. One of the disadvantages of a sole proprietorship is that the proprietor is exposed to unlimited liability. B. It is generally easier to transfer one's ownership interest in a partnership than in a corporation. C. One of the advantages of the corporate form of organization is that it avoids double taxation. D. One of the advantages of a corporation from a social standpoint is that every stockholder has equal voting rights, i.e., "one person, one vote." E. Corporations of all types are subject to the corporate income tax.
Justine purchases a T-shirt from Yours Truly Products, an online store. When she receives it, the design is off-center and the seams are loose. She decides never to order from Yours Truly again. Explain Justine's behavior and response in terms of contingent consequences.
What will be an ideal response?