Question
ii.) Calculate the expected share price one year from today (P). (6 Marks) iii.) Calculate the expected share price two years from today (P2).
ii.) Calculate the expected share price one year from today (P). (6 Marks) iii.) Calculate the expected share price two years from today (P2). (4 Marks) 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) 7 A B I !! 23
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