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Which statement is true? A.) an increase in the market value of preferred stock will increase a firm's weighted average cost of capital B.) preferred

Which statement is true?

A.) an increase in the market value of preferred stock will increase a firm's weighted average cost of capital

B.) preferred stock is generally the cheapest source of capital for a firm

C.) preferred stock is valued using the perpetuity present value formula

D.) the cost of preferred stock remains constant from year to year

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