Differentiate between common stock and preferred stock

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Q1. What is secondary Market? Discuss four types of Secondary market.

Q2. Differentiate between Common Stock and preferred stock.

Q3. What do you mean by capital budgeting. Also discuss its importance.

Q4. Project X has following cash flows,

CF0                   CF1                                      CF2                                      CF3             

-$5000             $1000              $2000              $3000

If the firm's cost of capital is 12%, using NPV technique state whether the project should be accepted or rejected.

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