Why is it more difficult to evaluate a share of common stock than it is to evaluate

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Why is it more difficult to evaluate a share of common stock than it is to evaluate bonds? Multiple select question.

The rate of return required by the shareholders is not easily observed.

The life of a bond is essentially forever, which makes it easy to evaluate a bond.

Financial statements contain all the information related to bonds, but they do not provide any information related to common stock.

Common stock cash flows are not known in advance.

Related Book For answer-question

Financial Accounting and Reporting a Global Perspective

ISBN: 978-1408076866

4th edition

Authors: Michel Lebas, Herve Stolowy, Yuan Ding

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Posted Date: Dec 22, 2023 12:23 AM

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Why is it more difficult to evaluate a share of common stock than it is to evaluate

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