Discussion: Foundation of Financial Management

Respond to the following questions thoroughly, in 150-300 words for each question. Use your textbook as your first and major reference.

1. Contrast the differences/similarities of common stocks and bonds. Explain how they would be used in the corporate environment.

2. With all investments, there are an expected percentage return and certain types of return that can be expected. Describe the possible forms in which a return could be received for bonds, common stock, and preferred stock.