From a cost perspective, preferred stock is a less desirable source of capital for a firm than bonds.

Name: From a cost perspective, preferred stock is a less desirable source of capital for a firm than bonds.
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Preferred stock often carries a higher cost of capital compared to bonds because dividends on preferred stocks are not tax-deductible, unlike interest payments on bonds, making bonds a cheaper source of capital for firms.

From a Cost Perspective, Preferred Stock Is a Less Desirable