Question

The preferred dividend is divided by preferred stock price multiply by (1-floatation cost) is used to calculate

a.

transaction cost of preferred stock

b.

financing of preferred stock

c.

weighted cost of capital

d.

component cost of preferred stock

Answer: (d).component cost of preferred stock

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Q. The preferred dividend is divided by preferred stock price multiply by (1-floatation cost) is used to calculate

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