College of Administrative and Financial Sciences
Assignment -2
Academic Year: 1441/1442 H
| Course Name: Investments | Student’s Name: |
| Course Code: FIN403 | Student’s ID Number: |
| Semester: 2nd | CRN: 21946 |
For Instructor’s Use only
| Instructor’s Name: | |
| Students’ Grade: Marks Obtained/Out of | Level of Marks: High/Middle/Low |
Instructions – PLEASE READ THEM CAREFULLY
- The Assignment must be submitted on Blackboard (WORD format only) via allocated folder.
- Assignments submitted through email will not be accepted.
- Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page.
- Students must mention question number clearly in their answer.
- Late submission will NOT be accepted.
- Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks.
- All answered must be typed using Times New Roman (size 12, double-spaced)
- Submissions without cover page will NOT be accepted.
Assignment 2
Submission Date by students: 3/4/2021
Place of Submission: Students Grade Centre via blackboard.
Weight: 05 Marks
Assignment Purposes/Learning Outcomes:
CLO-3. Demonstrate investment arrangements as part of the process for implementing an investment strategy. ( PLO-2.2)
CLO-4. Demonstrate the valuation methods used for valuation of the common forms of debt, equity, property and derivative securities.( PLO-2.3).
Assignment Question(s): (Marks 5)
Q.1. Why would a corporate investor consider preferred stock over a bond? What is meant by the cumulative feature of preferred stock issues? ( 2 Marks)
Q.2. What does the strong form of the efficient market hypothesis suggest? Are major test results generally supportive of the strong form? ( 2 Marks )
Q.3. What might a high dividend-payout ratio suggest to an analyst about a company’s growth prospects? ( 1 Mark)
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