Which of the following is true of a common stockSolutionComm

Which of the following is true of a common stock?

Solution

Common stock holders are considered to own a part of the company. Unlike debt they are not guaranteed any fixed returns. Since they are considered risk free capital, the expected return on common stock is considered to be higher.

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Which of the following is true of a common stock?SolutionCommon stock holders are considered to own a part of the company. Unlike debt they are not guaranteed a

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