Identify whether the key characteristic describes common stock ...

[darbym82]

Identify whether the key characteristic describes common stock (CS) or preferred stock (PS).
 
  ________ 1. Source of financing which places minimum constraints on the firm
  ________ 2. Used by young firms receiving investment funds from venture capital firms
  ________ 3. Potential dilution of earnings and voting power
  ________ 4. Fixed financial obligation
  ________ 5. Increases the firm's borrowing power
  ________ 6. May have cumulative and participating features
  ________ 7. May be convertible into another type of security
  ________ 8. Last to receive earnings or distribution of assets in the event of bankruptcy
  ________ 9. Frequently includes a call feature

Question 2

Although differences in the magnitude and timing of cash flows explain conflicting rankings under the NPV and IRR techniques, the underlying cause is the implicit assumption concerning the reinvestment of intermediate cash inflows.
 
  Indicate whether the statement is true or false

[wfdfwc23]

Answer to Question 1

1. CS
2. PS
3. CS
4. PS
5. CS
6. PS
7. PS
8. CS
9. PS

Answer to Question 2

TRUE

[darbym82]

Excellent

[yeungji]

YES! Correct, THANKS for helping me on my review