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A firm has common and preferred stock outstanding , both of which just paid a dividend of $3 per share . Which do you think
A firm has common and preferred stock outstanding , both of which just paid a dividend of $3 per share . Which do you think will have a higher share price and why? If the firm also has an issue of non- callable debentures outstanding, which do you think investors will require a higher return on, the debentures or the shares of common stock? Explain
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