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  3. Study Set
    Principles of Managerial Finance
  4. Exam
    Exam 9: The Cost of Capital
  5. Question
    The Cost of Preferred Stock Is Typically Higher Than the Cost
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The Cost of Preferred Stock Is Typically Higher Than the Cost

Question 13

Question 13

True/False

The cost of preferred stock is typically higher than the cost of long-term debt (bonds) because the cost of long-term debt (interest) is tax deductible.

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