Although _____________ is legally a form of equity, it is often referred to as a _____________ security because it has characteristics of both long-term debt and equity.

Word bank: Capital, Capital gain, Capital rationing, Cash outflows, Cheapest, Cost of capital, Debt, Equity, Externalities, Financial- leverage, Fluctuating, Higher, Hybrid, Incremental CFs, Independent, Interest expense, Investor's, IRR, Most expensive, Mutually exclusive, Negative, New stock, NPV rule, Open- market, Operating leverage, Opportunity, Overvalued, Positive, Preferred stock, Shareholder's, Sunk, WACC