The marginal cost of preferred stock is to equal to:
a)the preferred stock dividend divided by the market price
b)the preferred stock dividend divided by the net market price
c)the preferred stock dividend divided by its par value
d)(1-tax rate) times the preferred stock dividend divided by the net
price

A firms capital struture excludes which of the following?
a)bonds
b)preferred stock
c) common stock
d) accounts payable

Depreciation expenses affect tax-related cash flows by:
a)increasing taxable income, thus increading taxes
b)decreasing taxable income, thus reducing taxes
c)decreasing taxable income, with no effect on cash flow since
depreciation is a non-cash expense
d)none of the above

Hi k9queen:


The marginal cost of preferred stock is to equal to: 

b)the preferred stock dividend divided by the net market price 

Source: 
http://www.coba.usf.edu/departments/finance/faculty/pappas/CH12-50.pdf


A firms capital struture excludes which of the following? 

d) accounts payable

Source:
http://www.investorwords.com/cgi-bin/getword.cgi?733
http://teachmefinance.com/costofcapital.html


Depreciation expenses affect tax-related cash flows by: 

b)decreasing taxable income, thus reducing taxes 

Source: 
http://grader.prenhall.com/BB_CGI/BB_Grader/1,1002,,.html


I hope this helps. 

websearcher-ga


Search Strategy (on Google):

"marginal cost of preferred stock" net market price
"capital structure" bonds "preferred stock"
"depreciation expenses" "tax-related cash flows"

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Clarification of Answer by websearcher-ga on 12 Feb 2003 12:11 PST

Hi k9queen:

Just tried that last link and it doesn't seem to work. Try 

Chapter 10: Cash Flow and Other Topics in Capital Budgeting.
http://cwx.prenhall.com/bookbind/pubbooks/keown/chapter10/multiple1/deluxe-content.html

instead. 

websearcher-ga

Thank you very much, very fast and clear!