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1. Why bonds and preferred stocks are considered fixed-income securities? 2. Why do corporations prefer a high-bond rating to a lower-bond rating on their debt

1. Why bonds and preferred stocks are considered fixed-income securities?

2. Why do corporations prefer a high-bond rating to a lower-bond rating on their debt securities?

3. Why is valuing common stock more difficult and less precise than valuing bonds?

4. How does a firms future growth rate affect common stock value?

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