Which of the following relationships is true, regarding the costs of issuing the below securities?
a.Common stock > bonds > preferred stock
b.Preferred stock > common stock > bonds
c.Bonds > common stock > preferred stock
d.Common stock > preferred stock > bonds
Table 1 (Use this for questions 32-36)
Average selling price per unit $16.00
Variable cost per unit $11.00
Units sold 200,000
Fixed costs $800,000
Interest expense $ 50,000
a.Common stock > bonds > preferred stock
b.Preferred stock > common stock > bonds
c.Bonds > common stock > preferred stock
d.Common stock > preferred stock > bonds
Table 1 (Use this for questions 32-36)
Average selling price per unit $16.00
Variable cost per unit $11.00
Units sold 200,000
Fixed costs $800,000
Interest expense $ 50,000
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