Question 1
Regarding dividends paid on common stock,
◦ older, established firms tend to pay lower dividends.
◦ newer firms in growth industries tend to pay higher dividends.
◦ some firms don't pay any dividends at all.
◦ a firm with high dividends is likely to have high stock price appreciation.
Question 2
Growth stocks tend to
◦ be those of more established companies.
◦ offer great opportunities for capital appreciation.
◦ pay high dividends.
◦ be favored by more conservative investors.