Which of the Following Is Not Considered a Capital Component

question 39

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) Accounts payable.
• D) Preferred stock.
• E) All of the above are considered capital components for WACC and capital budgeting purposes.

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Definitions:

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A sociological perspective that views social life as a competition, and focuses on the distribution of resources, power, and inequality within a society.

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A socio-political and economic ideology based on the works of Karl Marx, focusing on class struggle, the critique of capitalism, and the advocacy for a classless society.

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A form of leadership where followers are drawn to the leader's personal qualities and the way these qualities inspire loyalty and obedience.