Which of the following statements is most accurate regarding a firm’s cost of preferred shares A firm’s cost of preferred stock is:（）
A: the market price of the preferred shares as a percentage of its issuance price.
B: the dividend yield on the firm’s newly-issued preferred stock.
C: approximately equal to the market price of the firm’s debt as a percentage of the market price of its common shares.
A: the market price of the preferred shares as a percentage of its issuance price.
B: the dividend yield on the firm’s newly-issued preferred stock.
C: approximately equal to the market price of the firm’s debt as a percentage of the market price of its common shares.
举一反三
- Which of the following statements related to preferred stock are correct? I. Preferred stock pays a constant dividend. II. Preferred stock is generally the cheapest source of capital for a firm. III. A decrease in the market value of preferred stock will increase a firm's weighted average cost of capital. IV. An increase in the rating of a preferred stock will increase the cost of preferred. A: II and III only B: I and IV only C: I and III only D: II and IV only E: I, III, and IV only
- A perfectly competitive firm is producing 75 units of output. The market price is $7 and the firm's marginal cost is $8. The firm should:
- Company A’s net profit last year was 2.5 million ￥, 1 million shares of common shares in circulation, 500,000 shares of preferred shares, and a dividend of 1 ￥ per share. If the price of common stock A: 15 B: 12 C: 18 D: 22
- If a firm in a perfectly competitive market tries to raise its price above the going market price, then:
- If a monopolist engages in three-degree price discrimination in two segmented markets, but the firm's cost function is the same in both markets, in which market will the firm set a higher price? A: The larger market in terms of market size B: The smaller market in terms of market size C: The market with more elastic demand D: The market with less elastic demand