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It Is More Difficult to Value a Stock Than It

Question 92

Multiple Choice

It is more difficult to value a stock than it is to value a bond because:


A) The future cash flows of a stock are known.
B) The life of an equity security is limited.
C) The required market rate of return on a stock is known in advance.
D) Equity securities have no maturity date.
E) The maturity value of a stock is known.

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