Note: Respond to the following questions thoroughly, in 150 words for each question. Must include one credible references cited in APA for each answer. Must provide 100% original answer.
- Contrast the differences/similarities of common stocks and bonds. Explain how they would be used in the corporate environment.
- With all investments, there are an expected percentage return and certain types of return that can be expected. Describe the possible forms in which a return could be received for bonds, common stock, and preferred stock.
- Compare long-term instruments and short-term risks, in terms of the various types of risk to which investors are exposed. Explain your answers.
- What methods can be used by the FED to influence interest rates? Are these methods effective? Use examples where appropriate.
- If a company is going to finance a project entirely with retained earnings, what would be the cost of that capital? Why?