finance (bonds vs. perferred stock)

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Corporations prefer bonds to preferred stock for financing their operations because

A. preferred 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

none of these choices provide a clear reason for corporations perferring bonds to stocks for financing their operations.

I chose D none of the above...
Is this correct?

  • finance (bonds vs. perferred stock) -

    I answered this already. The answer is C

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