Question

A rationale for preferred stock:
a.) It lowers the cost of financing, as compared with debt issuance.
b.) The dividends associated with it are tax-deductible.
c.) It expands the capital base without diluting common equity.
d.) Its holder benefits from an increased ownership in the company.

Answer 1

Explanation:

eA rationale for preferred stock:

a.) It lowers the cost of financing, as compared with debt issuance.

b.) The dividends associated with it are tax-deductible.

c.) It expands the capital base without diluting common equity.

d.) Its holder benefits from an increased ownership in the company.