Question
Given three possible investments in a company, an appropriate return for each would be: Capital creditor ( 8%,7%, 6%) , Preference share (8%,7%,6%) , Common
Given three possible investments in a company, an appropriate return for each would be: Capital creditor ( 8%,7%, 6%) , Preference share (8%,7%,6%) , Common share (8%,7%,6%) .
The reason why capital creditors have the (smallest,largest,middle) return is because (they get paid last and take the lowest risk, they get paid last and take the highest risk, they get paid first and take the lowest risk, they get paid first and take the highest risk) . If you wish to have voting rights for a company's board of directors, you need to be a (preference shareholder, common shareholder, capital creditor) .
Part B
Company A has a share price of $0.02, $0 of earnings and 1 million shares outstanding. Company B has a share price of $200, $200 million in earnings and 20 million in shares outstanding. Company C has a share price of $36, $600,000 in earnings and 1 million in shares outstanding.
Given the above information, (Company B, Company A, Company C) is the most expensive company and (Company A, Company B, Company C) is the most likely to be a value stock.
REQUIRE: Choose the correct option in each bracket
I need this now please answer me quickly, thank you
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