1. Describe briefly the legal rights and privileges of common stockholders.

a. Explain the role of a proxy.

b. What are the different types of common stock and why do companies use the various classes?

2. Write a formula that can be used to value any stock, regardless of its dividend pattern. Briefly explain.

3. What is a constant growth stock? How are constant growth stocks valued?

4. Why are preferred stocks considered hybrid securities?