Question

The cost of preferred stock is usually more than the cost of debt because of

Answer 1

Answer:

Typically the cost of preferred stock is higher than the after-tax cost of debt. This is because of both the tax deductibility of interest and the fact that preferred stock is riskier than debt.

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Answer 2

Answer:

Answer:

Typically the cost of preferred stock is higher than the after-tax cost of debt. This is because of both the tax deductibility of interest and the fact that preferred stock is riskier than debt.

Hope you have understood

Mark it as

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