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Question
The cost of preferred stock is equal to:A) the preferred stock dividend divided by market price.
B) the preferred stock dividend divided by its par value.
C) (1 - tax rate) times the preferred stock dividend divided by net price.
D) the preferred stock dividend divided by the net market price.
Answer
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Related questions
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A) The net present value.
B) The internal rate of return.
C) The profitability index.
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The equivalent annual cost method is most appropriate in which of the following situations? In each case, assume that several mutually exclusive options are available.
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The ________ designates the date on which the stock transfer books are closed in regard to a dividend payment.
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D) payment date
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Five years ago, Mr. Martinez purchased 1000 shares of JPM stock at $50 per share. If Mr. Martinez ' tax rate is 25% would he prefer that the company pay a $5.00 per share dividend or offer to repurchase 100 shares at $50 per share?
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