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If a Firm Has Total Long-Term Capital of $1,000,000, Preferred

Question 83

Multiple Choice

If a firm has total long-term capital of $1,000,000, preferred stock of $500,000, preferred dividends of $10 and preferred stock price of $100, the weighted cost of capital is: Bad item-can't tell as no cost of debt given.Strange, too, there is no common stock.


A) 50%
B) 10%
C) 5%
D) cannot tell from this information

Correct Answer:

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