FIN/370 Week 2
1)
When you look
at your lifetime payments over the life of a mortgage, does a majority of the
payment go towards interest or principal near the beginning of the loan?
2)
Explain APR vs
EAR and what is the difference?
3)
What’s the
difference between common stock and preferred stock? Can the Dividend
Discount Model be used to value both types of stock?
4) “Preferred Stock is a class of ownership
that has a higher claim than a Common Stock when it comes to assets and
earnings.” Does anything have priority over preferred stock?
