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1. Why do investors generally consider common stock to be riskier than preferred stock?

2. Should a firm pay cash dividends in a year in which it raises external common equity?

3. Discuss the meaning of an optimal capital budget.

4. Evaluate the statement "Depreciation-generated funds have no explicit cost and therefore should be assigned a zero cost in computing a firm's cost of capital."

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M92090767

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