Which of the Following Is NOT a Capital Component When

question 13

Multiple Choice

Which of the following is NOT a capital component when calculating the weighted average cost of capital (WACC) for use in capital budgeting?

• A) Accounts payable.
• B) Common stock "raised" by reinvesting earnings.
• C) Common stock raised by new issues.
• D) Preferred stock.
• E) Long-term debt.

---

Definitions:

Willingness

The quality or state of being prepared to do something; readiness.

Rough-And-Tumble Play

Vigorous play that involves physical activities like running, chasing, and play-fighting, important for social and physical development.

United States

A country in North America consisting of 50 states and a federal district, known for its diverse geography and cultural influence globally.

Parallel Play

A developmental stage where children play next to each other but do not interact or play together, often seen in toddlers.