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Using Present Value to Calculate Stock Prices Is ________ Than

Question 232

Multiple Choice

Using present value to calculate stock prices is ________ than using present value to calculate bond prices because ________.


A) less accurate; dividend payments for stocks are known with certainty but coupon payments for bonds are not
B) less accurate; coupon payments for bonds are known with certainty but dividend payments for stocks are not
C) more accurate; dividend payments for stocks are known with certainty but coupon payments for bonds are not
D) more accurate; coupon payments for bonds are known with certainty but dividend payments for stocks are not

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