dont copy from other answers please

1. Why is preferred stock referred to as a hybrid security? Please explain.

2. Compare valuing preferred stock and common stock.

3. Explain the model that we use to calculate the value of a common stock. What assumptions do we need to make?

4. Why is capital budgeting such an important process?

5. What are the disadvantages of using the payback period as a capital-budgeting technique? What are its advantages?

6. Please describe each of the following three capital budgeting techniques: NPV, PI, and IRR