The cost of preferred stock: a. is unaffected by changes in the market price of

Option C

Explanation: The value of preferred shares is the rate of return expected by the preferred stockholders of a corporation. It is computed by dividing the regular preferred dividend payment by the current market price of the preferred shares.

In several situations, a preference share's cash flow channel is perpetuity as it has infinite lifespan and each cycle offers a fixed sum of dividends. Thus from the above we can conclude that the correct option is C.

The answer is A, hope this helps