CORPORATE FINANCE
CORPORATE FINANCE
12th Edition
ISBN: 9781307702804
Author: Ross
Publisher: MCG/CREATE
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Chapter 27, Problem 5CQ
Summary Introduction

To identify: The reason preferred stock with a dividend is tied to short term interest rates an attractive short term investment.

Short Term Investments:

Short terms investments are those investments that can be converted into cash in a very short time period such as 3 to 12 months.

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What is WACC-Weighted average cost of capital; Author: Learn to invest;https://www.youtube.com/watch?v=0inqw9cCJnM;License: Standard YouTube License, CC-BY