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The cost of preferred stock: is generally calculated using the overall firms beta. is equal to the stocks dividend yield. is set equal to the

The cost of preferred stock:

is generally calculated using the overall firms beta.

is equal to the stocks dividend yield.

is set equal to the pretax cost of debt since it is a fixed income security.

should be adjusted for taxes when computing WACC.

is ignored by all firms when computing WACC.

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