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Which of the following statements about common stock valuation are true? Select all that apply. Select one or more: The process for valuing common stock

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Which of the following statements about common stock valuation are true? Select all that apply. Select one or more: The process for valuing common stock is almost identical to the process for valuing bonds, except the the expected dividends are used when valuing stocks rather than coupon payments. For both stocks and bonds, the future maturity value is typically $1,000 e Common stock dividends are normally expected to grow; therefore, the perpetuity formula typically used for preferred stock valuation cannot be used for common stock valuation The value of a share of common stock is equal to the present value of the future coupon payments and the present value of the stock's par value The future cash flows for the owners of common stock of a company are typically known with a higher level of certainty than the future cash flows for owners of bonds of the same company, The cash flows for the common stock of most companies are constant; therefore, a one-period perpetuity valuation model can be used to value most common stock The expected cash flows from holding common stock are future divided payments and capital gains (or losses) from selling the stock in the future. The expected cash flows from common stock are uncertain and variable and that makes common stock valuation more complicated than bond valuation The value of a share of stock is equal to the present value of all future cash flows expected to be received by the owners of the stock

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