Generally, the Order of Cost, from the Least Expensive to the Most

question 59

Multiple Choice

Generally, the order of cost, from the least expensive to the most expensive, for long-term capital ofa corporation is

• A) preferred stock, retained earnings, common stock, new common stock.
• B) common stock, preferred stock, long-term debt, short-term debt.
• C) new common stock, retained earnings, preferred stock, long-term debt.
• D) long-term debt, preferred stock, retained earnings, new common stock.

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Definitions:

Utility Company

A company that provides essential services such as electricity, water, and natural gas to consumers and businesses.

Grocery Store

A retail establishment selling food and other household goods. Often considered an essential service providing everyday necessities to the public.

External Cost

Costs of a transaction or activity that affect parties who did not choose to incur that cost, often referred to in the context of negative externalities in environmental economics.

Postal Worker

An employee of the postal service who is involved in the processing, delivery, or handling of mail.