Which of the Following Would Generally Be Considered an Operating

question 138

Multiple Choice

Which of the following would generally be considered an operating revenue or expense?

• A)Income from renting out extra warehouse space.
• B)Interest on a note payable.
• C)Dividends earned on an investment is another company's stock.
• D)Depreciation expense.

---

Definitions:

Weighted Average Cost of Capital (WACC)

A computation of an enterprise's cost of capital, with each capital category assigned a proportional weight.

Weighted Average Cost of Capital (WACC)

A measure of a firm's cost of capital in which each category of capital is proportionately weighted.

Corporate Tax Rate

The tax that corporations are required to pay on their income, which varies by country and sometimes by the level of income or industry.

Embedded Debt Cost

The total expenses, both direct and indirect, associated with issuing and carrying debt over its entire life, including interest payments and fees.