Please answer these questions with details.

(a) If common stockholders are the owners of the company, why do they have the last claim on assets and a residual claim on income? (6 marks) (b) Nicki has a contract in which she will receive the following payments for the next five years: $1,000,$2,000,$3,000,$4,000, and $5,000. She will then receive an annuity of $8,500 a year from the end of the 6 th through the end of the 15 th year. The appropriate discount rate is 14 percent. If she is offered $30,000 to cancel the contract, should she do it? (7 marks) (c) The ABC Company has been very successful in the past four years. Over these years, it paid common stock dividend of $4 in the first year, $4.20 in the second year, $4.41 in the third year, and its most recent dividend was $4.63. The company wishes to continue this dividend growth indefinitely. What is the value of the company's stock if the required rate of return is 12 percent? (7 marks)