Distinguish between the cash budget and the capital budget, Finance Basics

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Distinguish between the cash budget and the capital budget

Question: Please answer the following questions:

1. Would the default premium on an investment grade corporate bond be higher or lower than that on a junk bond? Explain.

2. If you were asked to comment on the differences and similarities between a credit union and a commercial bank, how would you respond?

3. Distinguish between the cash budget and the capital budget

4. What is the difference between preferred and common stock? If you want higher expected returns, which would you purchase? Which is riskier; why?

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Finance Basics: Distinguish between the cash budget and the capital budget

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Finance Basics: Distinguish between the cash budget and the capital budget

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