The ________ Is Utilized to Value Preferred Stock

question 121

Multiple Choice

The ________ is utilized to value preferred stock.

• A) capital asset pricing model
• B) arbitrage pricing model
• C) zero-growth model
• D) Black-Scholes model

---

Definitions:

Insourcing

The practice of assigning tasks or projects to personnel within the organization instead of outsourcing to external entities.

Offshoring

The practice of relocating business processes or production to a foreign country to reduce costs.

Subcontracts

Secondary contracts that are assigned by a primary contractor to third parties to perform part of the work originally contracted.

Prime Contractor

The main contractor who has a direct contract with the client and takes overall responsibility for the execution of a project, subcontracting parts of the work to others as necessary.