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:

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Radio Broadcast

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Sociological Problem

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The feeling or state of being part of a group, society, or community, emphasizing the individual's connection and relationship with others.