Assignment 5 1. How does the approach of the three-step valuation differ for stocks vs. bonds? 2. Explain the difference between par value, book value, and market value for a common stock. Whi

Assignment 5

1.     How does the approach of the three-step valuation differ for stocks vs. bonds?

2.     Explain the difference between par value, book value, and market value for a common stock. Which is most important? Why?

3.     What is meant by market efficiency? What are the three types of market efficiency?

4.     What rights are given to stockholders? Explain each.