The cost of issuing preferred stock must be adjusted for taxes because preferred stock dividend payments represent a tax-deductible expense for the firm.
Answer the following statement true (T) or false (F)
False
The dividend associated with preferred stock is constant, and that preferred stock has no stated maturity. To determine the component cost of preferred stock we adjust the current market price to reflect the fact that the firm incurs costs when it issues preferred stock to raise funds. Preferred stock dividends are not tax deductible expenses for the firm. See 11-1: Component Costs of Capital
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On December 1, 2016, Old Car Co borrowed money at the bank by signing a 90-day non-interest-bearing note for $24,000 that was discounted at 8%. Which of the following entries is correct?
A) March 1, 2017Note Payable 23,520Cash 23,520 B) December 31, 2016Interest Expense 160Interest Payable 160 C) December 1, 2016Cash 24,000Note Payable 24,000 D) December 31, 2016Interest Expense 160Discount on Notes Payable 160
Even if storage cost is not as attractive as that of CDs, portability and the fact that their ports are ubiquitous in PCs might push one toward selecting a _____.
A. Zip disk B. USB flash drive C. flash disk D. memory card
A(n) ________ contract refers to a contract that is entered into by the parties by use of email.
A. web B. online C. email D. ISP
Closing the sale is not a part of the sales presentation in which hidden objections are discovered.
Answer the following statement true (T) or false (F)