Question

Which hybird security has some elements that resemble equity and others that resemble debt? A- common...

Which hybird security has some elements that resemble equity and others that resemble debt? A- common stock B- preferred stock C- derivative stock D- treasury stock

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Answer: Option-(B): preferred stock Reason: Equity security refers to a type of investment in a firm made by investors with p

Add a comment
Know the answer?
Add Answer to:
Which hybird security has some elements that resemble equity and others that resemble debt? A- common...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Preferred stock is a hybrid security, because it has some characteristics typical of debt and others...

    Preferred stock is a hybrid security, because it has some characteristics typical of debt and others typical of equity. The following table lists various characteristics of preferred stock. Determine which of these characteristics is consistent with debt and which is consistent with equity. Characteristics Debt Equity Usually has no voting rights. No tax adjustments are made when calculating the cost of preferred stock. Consider the case of Tamin Enterprises: At the present time, Tamin Enterprises does not have any preferred...

  • Preferred stock is a hybrid security, because it has some characteristics typical of debt and others...

    Preferred stock is a hybrid security, because it has some characteristics typical of debt and others typical of equity. The following table lists various characteristics of preferred stock. Determine which of these characteristics is consistent with debt and which is consistent with equity. Characteristics Debt Equity Has a par, or face, value. Failure to pay a preferred dividend does not send the firm into bankruptcy. O Consider the case of Turnbull Enterprises: At the present time, Turnbull Enterprises does not...

  • Preferred stock is often called a hybrid security because it has some characteristics that are typical of debt and...

    Preferred stock is often called a hybrid security because it has some characteristics that are typical of debt and others that are typical of common equity. The following table lists several characteristics of preferred stock. Determine which of these characteristics are consistent with debt securiti and which are consistent with common stock. Characteristic Debt Common stock Most issues pay quarterly dividends. Some issues are perpetual, and do not mature. O Consider the case of Blue Hamster Manufacturing: Blue Hamster Manufacturing...

  • Preferred stock is often called a hybrid security because it has some characteristics that are typical...

    Preferred stock is often called a hybrid security because it has some characteristics that are typical of debt and others that are typical of equity. The following table lists several characteristics of preferred stock. Determine which of these characteristics are consistent with debt securities and which are consistent with common stock. Characteristic Debt Common Stock Dividend calculated as a percentage of the par value Usually nonparticipating May be called, or redeemed, prior to the end of its normal life Happy...

  • 7. Preferred stock Preferred stock is often called a hybrid security because it has some characteristics...

    7. Preferred stock Preferred stock is often called a hybrid security because it has some characteristics that are typical of debt and others that are typical of common equity. The following table lists several characteristics of preferred stock. Determine which of these characteristics are consistent with debt securities and which are consistent with common stock. Characteristic Debt Common stock May have a sinking fund provision Usually has no specified maturity date Usually has no voting rights Green Caterpillar Garden Supplies...

  • 3. The cost of preferred stock Preferred stock is a hybrid security, because it has some...

    3. The cost of preferred stock Preferred stock is a hybrid security, because it has some characteristics typical of debt and others typical of equity. The following table lists various characteristics of preferred stock. Determine which of these characteristics is consistent with debt and which is consistent with equity. Characteristics Debt Equity Usually has no voting rights. No tax adjustments are made when calculating the cost of preferred stock. Consider the case of Tamin Enterprises: At the present time, Tamin...

  • 3. The cost of preferred stock Preferred stock is a hybrid security, because it has some...

    3. The cost of preferred stock Preferred stock is a hybrid security, because it has some characteristics typical of debt and others typical of equity. The following table lists various characteristics of preferred stock. Determine which of these characteristics is consistent with debt and which is consistent with equity. Characteristics Dividends are fixed Debt 0 O Equity 0 o No tax adjustments are made when calculating the cost of preferred stock. Consider the case of Bogdan Enterprises: At the present...

  • Which is not an example of a capital market security? a. common stock b. a 30...

    Which is not an example of a capital market security? a. common stock b. a 30 day treasury bill c. corporate bonds d. preferred stock e. none of the above

  • please answer all parts to the question 3. The cost of preferred stock Preferred stock is a hybrid security, becau...

    please answer all parts to the question 3. The cost of preferred stock Preferred stock is a hybrid security, because it has some characteristics typical of debt and others typical of equity. The following table lists various characteristics of preferred stock. Determine which of these characteristics is consistent with debt and which is consistent with equity Characteristics Debt Equity Dividends are fixed. No tax adjustments are made when calculating the cost of preferred stock Consider the case of Bogdan Enterprises:...

  • Percy Motors has a target capital structure of 40% debt and 60% common equity, with no...

    Percy Motors has a target capital structure of 40% debt and 60% common equity, with no preferred stock. The yield to maturity on the company's outstanding bonds is 9%, and its tax rate is 40%. Percy's CFO estimates that the company's WACC is 8.96%. What is Percy's cost of common equity? A) 9% B) 11.33% C) 14% D) 12.98% E) 10.21%

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT