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A firm’s cost of preferred stock is equal to the preferred dividend divided by market price plus the dividend growth rate (Kp= D/Po+ g). T/F,,A firm should always be at a single optimum debt to equity ratio to minimize its cost of capital. T/F,, All firms within particular industries have similar optimum capital structures.T/F,,In determining the cost of preferred stock, the earnings on outstanding preferred stock may be used as a proxy. T/F,,,,,,

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