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- Is there a consequence for reported profit or loss if a particular financial instrument, for example, a preference share, is designated as debt rather than equity? Explain the consequence.The most difficult component cost of financing to measure is the cost of ________ a Preferred stock b Short-term debt c Common stockWhat are the similarities and differences in preferred stock and debt? When would you use either or both preferred stock and/or debt to raise capital?
- In what major ways do stocks differ from bonds? When would bonds be a better investment choice than common stock?which of the following source of finance is the middle layer between equity and debt?term loan / preference shares / mezzanine debt / debentureWhich of the following sources of financing has the lowest explicit cost? a common stock b preferred stock c debt