财务管理学及财务知识分析(英文版)(PPT 31页)

财务管理学及财务知识分析(英文版)简介：

Why is yield on preferred lower than kd?

Corporations own most preferred stock, because 70% of preferred dividends are nontaxable to corporations.
Therefore, preferred often has a lower B-T yield than the B-T yield on debt.
The A-T yield to an investor, and the A-T cost to the issuer, are higher on preferred than on debt.  Consistent with higher risk of preferred.

..............................