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In 3 to 4 sentences, describe how a bond's rating is an assessment of risk. How does the inverse relationship work? In 3 to 4

  1. In 3 to 4 sentences, describe how a bond's rating is an assessment of risk. How does the inverse relationship work?
  2. In 3 to 4 sentences, differentiate between the features of common stock and preferred stock.
  3. In 3 to 4 sentences, distinguish between the advantages and disadvantages of NPV and IRR.
  4. In 3 to 4 sentences, explain the cost of capital. What does the firm's capital structure represent? How does it relate to the firm's ability to maximize shareholder wealth?
  5. In 3 to 4 sentences, describe risk in the context of financial decision-making. How does it relate to the expected return?

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