Part A

Given three possible investments in a company, an appropriate return for each would be: Capital creditor 9%8%7% , Preference share 7%9%8% , Common share 7%9%8% .

The reason why preference shares have the smallestlargestmiddle return is because they have more risk than creditors and lower risk than ordinary shares.they have more risk than creditors and higher risk than ordinary shares.they have less risk than creditors and more risk than ordinary shares.they have less risk than creditors and lower risk than ordinary shares. . If you have 30% of ordinary shares and wish to take a controlling ownership of the company, you will need to buy a minimum 21%32%13%44% more ordinary shares.

Part B

Company A has a share price of $0.20, pays $0.02 as the next dividend and has a discount rate of 10%. Company B has a share price of $200, pays $20 as the next dividend which grows constantly at 1% and has a discount rate of 10%. Company C has a share price of $0.02, does not pay a dividend and has a discount rate of 20%.,

Given the above information and using dividend discount modelling, Company ACompany CCompany B is the best to sell and Company ACompany CCompany B is the best to buy.

i need this asap please