Q. Rank in ascending order (i.e., 1 = lowest, while 3 = highest) the likely after-tax component costs of a Company's long-term financing. (Solved)
1. 1 = bonds; 2 = common stock; 3 = preferred stock.
2. 1 = bonds; 2 = preferred stock; 3 = common stock.
3. 1 = common stock; 2 = preferred stock; 3 = bonds.
4. 1 = preferred stock; 2 = common stock; 3 = bonds.
- b. 1 = bonds; 2 = preferred stock; 3 = common stock.