Why is the cost of preferred stock normally higher than the, Ask an Expert

Finance

Why is the cost of preferred stock normally higher than the cost of debt?

Preferred stock dividends are tax deductions.

Common stock dividends are not tax-deductible.

Preferred stock dividends must be paid before common stock dividends.

Interest on debt is tax deductible.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92169847

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