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Which of the following statements is correct? A . The cost of preferred stock remains constant from year to year. B . The cost of

Which of the following statements is correct? A. The cost of preferred stock remains constant from year to year. B. The cost of preferred stock is affected by the issuer's tax rate. C. Preferred stock is generally the cheapest source of capital for a firm. D. Preferred stock is valued using the capital asset pricing model. E. An increase in the market value of preferred stock will decrease a firm's weighted average cost of capital.

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