Determine preferences of investors

Reference no: EM1364403

A gentleman owns Company X stock because its price has been steadily rising over the past few years and he expects its performance to continue. He is trying to convince this lady to purchase some Company X stock, but she is reluctant because Company X has never paid a dividend. She depends on steady dividends to provide her with income.

a. What preferences are these two investors demonstrating?

b. What argument should the man use to convince this lady that Company X stock is the stock for her?

c. Why might his argument not convince her?

Reference no: EM1364403

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