Should a firm pay cash dividends in a year

Reference no: EM131337177

1. Why do investors generally consider common stock to be riskier than preferred stock?

2. Should a firm pay cash dividends in a year in which it raises external common equity?

3. Discuss the meaning of an optimal capital budget.

4. Evaluate the statement "Depreciation-generated funds have no explicit cost and therefore should be assigned a zero cost in computing a firm's cost of capital."

Reference no: EM131337177

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