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Which of the following statements is CORRECT? Which of the following statements is correct? a. The component cost of preferred stock is expressed as rp(1

Which of the following statements is CORRECT? Which of the following statements is correct? a. The component cost of preferred stock is expressed as rp(1 - T). This follows because preferred stock dividends are treated as fixed charges, and as such they can be deducted by the issuer for tax purposes. b. A cost should be assigned to retained earnings due to the opportunity cost principle, which refers to the fact that the firm

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