What are a few differences between common stock and preferred stock?
What makes up the potential total return of a common stock that you purchase?
Why are stocks generally more difficult to value than bonds? (75150 words, or 12 paragraphs)
Why might a company choose to not pay dividends? (75150 words, or 12 paragraphs)
Under what two assumptions can you use the dividend growth model to determine the value of a share of stock? (150225 words, or 23 paragraphs)
Based on the dividend growth model, what are the two components of the total return on a share of common stock? Which do you think is typically larger? (75150 words, or 12 paragraphs)
Note: For each prompt, be sure to reference at least one scholarly source to support your answer.
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