Preferred stock generally has a higher required return than common stock because common shareholders get to vote and have preemptive rights not available to preferred shareholders. Select one: f True Etion False The less risky the bond (or the higher the bond rating) the lower will be the yield to maturity on the bond Select one: True O False Jiffy Wax Corp. can sell common stock for $15 per share and its investors require a 14% return. However, the administrative or flotation costs associated with selling the stock amount to $2.40 per share. What is the cost of capital for Jiffy Wax if the corporation raises money by selling common stock? an Select one: a. 16.67% O b. 14.00% O C. 30.00% o d. 21.50% There are no cash flow effects for the issuer of a zero coupon bond except for the initial cash inflow when the bonds are issued and the cash payment when the bonds mature. Select one: O True ag O False