单选题
Which of the following statements is most accurate regarding a firm's cost of preferred shares? A firm's cost of preferred stock is: A. the market price of the preferred shares as a percentage of its issuance price. B. the dividend yield on the firm's newly-issued preferred stock. C. approximately equal to the market price of the firm's debt as a percentage of the market price of its common shares.
【正确答案】
B
【答案解析】The newly-issued preferred shares of most companies generally sell at par. As such, the dividend yield on a firm's newly-issued preferred shares is the market's required rate of return.
The yield on a BBB corporate bond reflects a pre-tax cost of debt. The other choices make no sense.