问题
单项选择题
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.
答案
参考答案：B
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.