Question
True of False A stocks value is equal to discounted present value of the future returns which it generates. Preferred stock holders are owners of
True of False
A stocks value is equal to discounted present value of the future returns which it generates.
Preferred stock holders are owners of the company.
When a company issues stock, it tries to obtain debt capital and equity capital.
Both preferred stock and common stock have par values.
Stock price depends on its dividends.
Preferred stock dividend payments represent perpetual cash flows.
Common stock dividend payments represent annuity cash flows.
Preferred stock and common stock dont have maturities.
As investors required rate of return on a stock increases, the stock price goes up.
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