The Tchotchke Knick-Knack Company relies on preferred stock, bonds, and common stock for its long-term financing.

 Rank in ascending order (i.e.,1 = lowest, while3 = highest) the likely after-tax component costs of the Tchotchke Company's long-term financing.

1 = bonds;2 = common stock;3 = preferred stock.

1 = bonds;2 = preferred stock;3 = common stock.

1 = common stock;2 = preferred stock;3 = bonds.

1 = preferred stock;2 = common stock;3 = bonds.