If you're not able to answer all 5 questions. Please answer questions 1-3. But only if you csn't answer all 5 questions

Chapter 7 Homework - Assignment #7 - DUE NOVEMBER 8!! 10 regular points possible with one 3-point extra credit question. Note, some questions have more than one part. Answer all parts precisely and succinctly. Questions drawn from Chapters 7. Chapter 7 - Equity Markets and Stock Valuation 1. 7.1 Stock Valuation. Why does the value of a share of stock depend on dividends? 2. 7.2 Stock Valuation. A substantial percentage of the companies listed on the NYSE and the NASDAQ don't pay dividends, but investors are nonetheless willing to buy shares in them. How is this possible given your answer to the previous question? 3.7.3 Dividend Policy. Referring to the previous questions, under what circumstances might a company choose not to pay dividends? 47.5 Common versus Preferred Stock. Suppose a company has a preferred stock issue and a common stock issue. Both have just paid a $2 dividend. Which do you think will have a higher price, a share of the preferred or a share of the common? 5. 7.8 Dividends and Earnings. Is it possible for a company to pay dividends when it has a negative net income for the year? Could this happen for longer periods? Print Layout View Sec 1 Pages 1 of 2 Words: 0 of 366