Please describe in details for the following questions
Question 1. List at least three basic characteristics of preferred shares that differentiate them from common shares.
Question 2. What might a poor inventory turnover ratio signify (other than it is not generally desirable)? Hint: think about the components of this ratio and some of the problems you might see in the values reported in the financial statements.
Question 3. Canada Savings Bonds are popular investments for Canadians. List at least five features of CSBs that differentiate them from true bonds/debentures issued by the Government of Canada. Hint: the Bank of Canada issues CSBs on behalf of the Government of Canada.
Question 4. What is the effect on net profits after tax for a company when it issues bonds or debentures?
Question 5. Why would an investor buy preferred shares rather than bonds?
Question 6. Use a pie as an analogy to explain why a stock dividend does not increase an individual investor’s wealth.