Question

Would a “typical” common stock provide cash flows more like an annuity or more like an uneven cash flow stream? (2)

Answer 1

Answer:

A typical common stock will provide an uneven cash flow stream. Explanation: Common stock is a security that signifies ownership in a corporation. In a liquidation, common stockholders obtain whatever assets persist after bondholders, creditors, and preferred stockholders are paid.

Explanation:

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