Which One of the Following Is a Type of Equity

question 57

Multiple Choice

Which one of the following is a type of equity security that has a fixed dividend and a priority status over other equity securities?

• A)senior bond
• B)debenture
• C)warrant
• D)common stock
• E)preferred stock

---

Definitions:

IRR Method

The Internal Rate of Return (IRR) method is a financial analysis tool used to evaluate the profitability of potential investments by determining the discount rate that makes the net present value (NPV) of all cash flows equal to zero.

Discounted Payback

The period of time it takes to recoup the initial cost of an investment, taking into account the time value of money.

NPV Method

A financial analysis technique that calculates the net present value of an investment by discounting future cash flows to the present value.

NPV Profiles

Graphical representations that show the relationship between the Net Present Value (NPV) of investments and various discount rates.