Question: Question 2 (8 marks) i) A common stock that never pays any dividends is worthless. Explain whether this is true or false, and furthermore explain

Question 2 (8 marks)

i) A common stock that never pays any dividends is worthless. Explain whether this is true or false, and furthermore explain whether factors which are external to a firm, such as economic conditions, affect the intrinsic value of a share?

ii) State the advantages and disadvantages of investing in the common stock rather than the bonds of a corporation?

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