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Why is share valuation more difficult than bond valuation? Be sure to identify the risks and...

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Finance

Why is share valuation more difficult than bond valuation? Besure to identify the risks and uncertainties faced by shareholdersthat do not affect bond holders.

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Value of securities whether shares or bonds is same in that the value is the PV of the expected cash flows from the security discounted by the required rate of returnfor similar securities In the case of bonds the cash flows are certain as they are the maturity value    See Answer
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Why is share valuation more difficult than bond valuation? Besure to identify the risks and uncertainties faced by shareholdersthat do not affect bond holders.

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