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  3. Study Set
    Fundamentals of Financial Management Study Set 1
  4. Exam
    Exam 20: Hybrid Financing: Preferred Stock,leasing,warrants,and Convertibles
  5. Question
    Unlike with Bonds,the Cost of Preferred Stock to the Issuing
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Unlike with Bonds,the Cost of Preferred Stock to the Issuing

Question 46

Question 46

True/False

Unlike with bonds,the cost of preferred stock to the issuing firm is the same on a before-tax and after-tax basis.This is because dividends on preferred stock are not tax deductible,whereas interest on bonds is deductible.

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