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    Foundations of Financial Management Study Set 4
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    Exam 11: Cost of Capital
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    A Firm's Cost of Preferred Stock Is Equal to the Preferred
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A Firm's Cost of Preferred Stock Is Equal to the Preferred

Question 37

Question 37

True/False

A firm's cost of preferred stock is equal to the preferred dividend divided by market price plus the dividend growth rate (Kp = D/P0 + g).

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