Question
Why is valuing common stock more difficult and less precise than valuing bonds? Group of answer choices Future cash flows are uncertain. Future dividends are
Why is valuing common stock more difficult and less precise than valuing bonds?
Group of answer choices
Future cash flows are uncertain.
Future dividends are difficult to forecast accurately.
The future selling price is difficult to forecast.
All of These
How does the investor's required rate of return affect common stock value?
Group of answer choices
There is an inverse relationship between rates of return and common stock value.
When an investor's rate of return increases, the price they are willing to pay also increases.
There is no affect on common stock value based on rate of return.
Investors with lower required rates of return pay lower prices for common stock.
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