The capital components (debt, preferred stock, common stock) have varying amounts of risk based on the characteristics of each financial instrument.

Match the characteristic description with the name of the financial instrument it best describes.

Terms can be used more than once or not at all.

1	Repayment of this instrument is a a legal obligation - failure to pay can lead a firm into bankruptcy
2	This instrument has dividend priority; its dividends are paid first and are generally cumulative
3	This instrument has less uncertainty in that the amount and timing of its cash flows are known in advance
4	This instrument has priority in the event of corporate liquidation - its claims on the corporation's assets are satisfied first
5	This instrument has priority in corporate liquidation only over the claims of common stock holders

a.	Preferred Stock
b.	Debt
c.	Common Stock