Investments: FIN403

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)



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