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a) What are three key features of common stock? (Students are required to answer this part in around 200 words) b) ABC, Inc. just paid
a) What are three key features of common stock? (Students are required to answer this part in around 200 words) b) ABC, Inc. just paid a dividend of $2.25. ABC expects dividends to grow at 2%. The return on stocks like ABC, Inc. is typically around 10%. 1. What is the most you would pay for a share of ABC stock? 2. What do you expect the price of the share to be in 4 years time? c) Compare and contrast primary market and secondary market transactions as it relates to the flow of funds in the transactions.
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