Answered

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2. While the cash flows generated from common stock look like a perpetual bond, it is not a form of equity.

A. True
B. False

Sagot :

GinnyAnsweridn

Final answer:

Common stock is a form of equity that provides ownership in a company and rights to its profits.


Explanation:

False. While the cash flows from common stock may resemble a perpetual bond in terms of regular payments, common stock represents a form of equity. Shareholders receive ownership in the company and have rights to a portion of the company's profits, which can be distributed as dividends or reinvested.


Learn more about Common stock and equity here:

https://brainly.com/question/32708625


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