(Topic 9) An investor is interested in acquiring ownership in a firm while ensuring predictable timing and amount of cash flow. Which instrument should the investor choose?

The correct answer is D. Preferred stock. See the full explanation below for the reasoning.

Question

(Topic 9)

An investor is interested in acquiring ownership in a firm while ensuring predictable timing and amount of cash flow. Which instrument should the investor choose?

Options

ABonds
BCommercial paper
CCommon stock
DPreferred stock

How the community answered

(44 responses)

A
9% (4)
B
2% (1)
C
5% (2)
D
84% (37)

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