Amortization affects the amount of interest expense

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1. What is the meaning of the following sentence: Amortization affects the amount of interest expense? How does amortization of premium affect the amount of interest expense? How does amortization of discount affect the amount of interest expense?

2. Why might some stockholders be included to buy preferred stock rather than common stock? What are the advantages of investing in preferred stock?

Reference no: EM1357756

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