+1-415-670-9189
info@expertsmind.com
Differentiate between common stock and preferred stock
Course:- Finance Basics
Reference No.:- EM13884349




Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Finance Basics

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.

Answered:-

Verified Expert


Preview Container content

A secondary market is a financial market where different securities are traded on a well-organized and highly regulated manner so as protect the interest of the investors. Securities traded include both equity as well as debt securities. It is a market where investor purchase securities from other investor rather than from acquiring directly from any company. For instanceNew York stock exchange (NYSE), American Stock Exchange (AMEX) and Over the Counter Market (OTC) are examples of secondary market.In this market bulk of transaction takes place each day and price of the securities is solely determined by the forces of demand and supply.(investopedia, Secondary Market, n.d.)




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Finance Basics) Materials
Discuss how influential you believe the IASB is over FASB. Discuss whether or not you support the U.S. adopting International Financial Reporting Standards for publicly traded
Stock Y has a beta of 1.2 and an expected return of 15.3 percent. Stock Z has a beta of .8 and an expected return of 10.7 percent.What would the risk-free rate have to be for
Explain your stance on this issue. Choose one other issue that caught your interest in the article and discuss the issue in your own words. Explain how this issue is important
The firm has a tax rate of 30 percent, an opportunity cost of capital of 12 percent, and it expects net working capital to increase by $57,000 at the beginning of the projec
How much will you have when you retire in 46 years? How much will you have if you wait 10 years before beginning to save and only make 36 payments into your retirement account
Suppose your broker offers to sell you some shares of Swift and Company common stock that has just paid an yearly dividend of $2(yesterday). You expect the dividend to grow at
The accompanying balances were removed from the record of Rahul on 31st March, 2003. You are asked for to set up a trial equalization as on that date in the best possible stru
Fran's investment grew from $6,885 to $21,845 in 11 years. What was the overall rate of return of her investment? (Use percent form with two decimal places in your answer.)