Why would a corporate investor consider preferred stock over a bond?. Why would a corporate investor consider preferred stock over a bond?
Find attached Assignment -2.
Read all the instructions carefully and do as directed.
Fill all the columns carefully on the cover page of the assignment.
Submit your answers in proper format and should focus on the quality of contents. We will use evaluation criteria for grading the assignments, so focus on answer formats and richness of contents. For evaluation, rubrics standards will use. Assignment-2 scoring is 05 marks, so attempt in a good way and should be 3 to 4 pages in length.
Submission date:- 3/4/2021 – 8:00 PM KSA Time
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Q.1. Why would a corporate investor consider preferred stock over a bond? What is meant by the cumulative feature of preferred stock issues? ( 2 Marks)
Q.2. What does the strong form of the efficient market hypothesis suggest? Are major test results generally supportive of the strong form? ( 2 Marks )
Q.3. What might a high dividend-payout ratio suggest to an analyst about a company’s growth prospects? ( 1 Mark)