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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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