The cost of preferred stock is
A. lower than the cost of long-term debt.
B. higher than the cost of common stock.
C. higher than the cost of long-term debt and lower than the cost of common stock.
D. lower than the cost of convertible long-term debt and higher than the cost of common stock.
Answer:C
The cost of preferred stock is
A. lower than the cost of long-term debt. B. higher than the cost of common stock. C. higher than the cost of long-term debt and lower than the cost of common stock. D. lower than the cost of convertible long-term debt and higher than the cost of common stock.