Cost of preferred stock remains constant from year to year

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Reference no: EM131460508

Which statement is true?

a. An increase in the market value of preferred stock will increase a firm's weighted average cost of capital.

b. The cost of preferred stock is unaffected by the issuer's tax rate.

c. Preferred stock is generally the cheapest source of capital for a firm.

d. The cost of preferred stock remains constant from year to year.

e. Preferred stock is valued using the capital asset pricing model.

Reference no: EM131460508

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