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:

Color Vision

Color vision is the capacity of the eye and brain to distinguish objects based on the wavelengths of the light they reflect, emit, or transmit.

Retina

The light-sensitive layer of tissue at the back of the eye that converts light into neural signals.

Cones

Cells in the eye's retina known as photoreceptors, which are optimal in well-lit conditions and allow for the observation of colors.

Rods

Photoreceptor cells in the retina that are highly sensitive to low levels of light and are important for night vision.