Which of the following is not true about preferred
stock?
a. Dividends are legal obligations of the firm.
b. The after-tax cost is higher than debt with the same
yield.
c. Preferred stocks can be cumulative in respect to
dividends
d. Preferred stock dividends are taxable
Share
Which of the following is not true about preferred
stock?
a. Dividends are legal obligations of the firm.
b. The after-tax cost is higher than debt with the same
b. The after-tax cost is higher than debt with the sameyield.
c. Preferred stocks can be cumulative in respect to
dividends
d. Preferred stock dividends are taxable