The cost of preferred shares is
A) the rate of return investors require on a company's existing preferred shares.
B) the rate of return investors require on a company's new preferred shares.
C) calculated on an after tax basis.
D) the rate of return investors require on new preferred shares plus the cost of issuing the shares.

Question

Quizplus · Accepted Answer

The cost of preferred shares is the rate of return investors require on new preferred shares plus the cost of issuing the shares.

The Cost of Preferred Shares Is