Friday
July 25, 2014

Homework Help: finance (bonds to stock)

Posted by Jason on Friday, July 25, 2008 at 2:09pm.

corporations prefer bonds to preferred stock for financing their operations because?

A. prefered stocks require a dividend
B. bond interest rates change with the economy while stock dividends remain constant
C. the after-tax cost of debt is less than the cost of preferred stock
D. none of the above

preferred stock don't require a dividend, I don't know if stock dividends remain constant, after-tax cost of debit is cheeper than the cost of preferred stock.

I like C as my FINAL ANSWER, but I am not certain

Is this correct?

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

finance (bonds vs. perferred stock) - Corporations prefer bonds to preferred ...
bond valuation - Bond valuation The Garraty Company has two bond issues ...
bond valuation - Bond valuation The Garraty Company has two bond issues ...
finance (higher interest rate) - A higher interest rate (discount rate) would? A...
STOCKS & BONDS - Alpha Corporation has outstanding an issue of preferred stock ...
finance - There is a preferred stock that pays a dividend of $5.00 at the end ...
Finance - United Technology Corporation (UTC) has $40 million of convertible ...
personal finance - Which of the following investments would rank the highest ...
Finance - Hooks Athletics, Inc., has outstanding a preferred stock with a par ...
Accounting please help in homework - The overall (weighted average) cost of ...

Search
Members