ASSIGNMENT # 3 (Stock Valuation, Risk and Return) BS (A & F) Sec A Question #1 a) What risks do common stockholders take that other suppliers of capital do not? b) What claims do preferred stockholders have with respect to distribution of earnings (dividends) and assets? c) Describe the possible events that may occur in an efficient market (define each category of efficient market with separate example) in response to publicly available new information that causes the expected return to exceed the require return. What happens to the market value