Which of the Following Is Not Considered a Capital Component

question 18

Multiple Choice

Which of the following is not considered a capital component for the purpose of calculating the weighted average cost of capital as it applies to capital budgeting?

• A) Long-term debt.
• B) Common stock.
• C) Short-term debt used to finance seasonal current assets.
• D) Preferred stock.
• E) All of the above are considered capital components for WACC and capital budgeting purposes.

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Definitions:

Skeletal

Relating to the skeleton, the framework of bones that supports the body, protects internal organs, and facilitates movement.

Muscle

A tissue composed of fibers capable of contracting to produce movement or maintain the position of parts of the body.

Integument

Another term for the skin, which is the body's largest organ and serves as a protective barrier.

Malnourished

A condition where an individual's diet does not provide sufficient nutrients for health and well-being.