Which of the Following Is NOT a Capital Component When

question 1

Multiple Choice

Which of the following is NOT a capital component when calculating the weighted average cost of capital (WACC) for use in capital budgeting?

• A) Accounts payable.
• B) Retained earnings.
• C) Common stock.
• D) Preferred stock.
• E) Long-term debt.

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Definitions:

Cost-benefit Analysis

An analytical process to assess the advantages (benefits) and disadvantages (costs) of different options in order to make informed decisions.

IT Projects

Initiatives undertaken by a business or organization to design, develop, implement, and manage information technology solutions.

Website

A collection of web pages and related content identified by a common domain name, published on at least one web server.

Data Warehouse

A repository of historical data that are organized by subject to support decision makers in the organization.