Which of the following statements is false?
a. the cost of debt for bonds is the same as the yield implied by their market quoted prices, except when that promised yield is too high due, for example, to the high default probabilities for junk bonds.
b. the cost of preferred stock equals its dividend yield as a percent of the current price, rather than the preferred dividend as a percent of its stated liquidating value, which is usually $100.
c. judgment is typically required when estimating the cost of equity, particularly when a company pays no dividends and when its beta estimate is imprecise.
d. due to its lower priority and greater risk, a firm's cost of equity can sometimes be, and often is, less that its after-tax cost of debt.