Which of the following are often called a hybrid form of financing as they have characteristics of both debt and equity?
A) mutual funds
B) bonds
C) common shares
D) preferred shares

Question

Quizplus · Accepted Answer

Preferred shares are often called a hybrid form of financing because they have characteristics of both debt and equity. Like debt, they offer a fixed rate of return, and like equity, they do not have a maturity date and offer the potential for capital appreciation. Mutual funds, bonds, and common shares are not typically considered hybrid forms of financing.

Which of the Following Are Often Called a Hybrid Form