The cost of preferred stock is less than the cost of debt.
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Q14: If management substitutes new common stock for
Q15: The cost of retained earnings tends to
Q16: A firm will prefer to issue preferred
Q17: The optimal capital structure minimizes the weighted
Q18: A firm may initially increase its use
Q20: The optimal capital structure minimizes the cost
Q21: A firm can initially increase its use
Q22: Preferred stock increases common stockholders' return
A) more
Q23: If the marginal cost of capital rises,
Q24: If the dividend growth model is used,
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