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The cost of preferred stock

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Reference no: EM131449498

1. The cost of preferred stock:

a. is equal to the dividend yield.

b. is equal to the yield to maturity.

c. is highly dependent on the dividend growth rate

d. is independent of the stock's price.

e. decreases when tax rates increase.

2. Which of the following statements about margins is most correct?

a. The operating margin is always less than the total margin.

b. The operating margin is always greater than the total margin.

c. The operating margin focuses on core business profitability.

d. The total margin focuses on core business profitability.

e. The operating margin focuses on financial investment profitability.

Reference no: EM131449498

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