Each of the following is a reason why the valuation of common stock is considerably more complicated than that of bonds or preferred stocks EXCEPT _____.
A) the returns can take two forms: annual cash payments and price appreciation
B) the cash flows from common stocks are generally more uncertain than the cash flows from other types of securities
C) the returns from common stocks are generally larger and more certain than the returns from bonds and preferred stocks
D) None of these are correct

Question

Quizplus · Accepted Answer

This statement is incorrect. The returns from common stocks are generally more uncertain than the returns from bonds and preferred stocks. The correct answer is C because it is the opposite of what is actually true.

Each of the Following Is a Reason Why the Valuation