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