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1. Should preferred stock be classified as debt or equity, and why? Does it matter whether the classification of being made by the firm's (a)

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1. Should preferred stock be classified as debt or equity, and why? Does it matter whether the classification of being made by the firm's (a) management, (b) creditors, or (c) equity investors? 2. Differentiate between non-diversifiable (or systematic) risk and diversifiable risk. Why or why not should a firm act to reduce its diversifiable risk

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