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Why is valuing common stock more difficult than valuing bonds? Because bonds have more seniority than common stocks. Common stock is a long-term security and

Why is valuing common stock more difficult than valuing bonds?

Because bonds have more seniority than common stocks.

Common stock is a long-term security and a bond is a short-term security.

Because common stock is less risky to the investor than a bond.

It is more difficult to forecast future common stock cash flows than bond cash flow.

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