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b) Your friends are undecided about whether they should be investing in preferred stock or common stock. They would like to have a guaranteed

b) Your friends are undecided about whether they should be investing in preferred stock or common stock. They would like to have a guaranteed say in the decisions made by the company and they would enjoy the predictability of having a fixed dividend amount. Which of these two investment alternatives will allow them to achieve both goals? Explain. (6 Marks)

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