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Yes, cash flows connected to common stock can be difficult to estimate due to their reliance on various unpredictable factors, including market conditions, company performance, and investor sentiment. Unlike fixed-income securities with predetermined cash flows, common stock dividends may fluctuate or be suspended altogether. Additionally, the potential for capital gains is subject to market volatility, making accurate projections challenging. These uncertainties complicate the valuation and expected cash flow assessments for equity investments.

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1mo ago

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