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:

Economic Espionage

The act of secretly gathering confidential economic information or trade secrets from competitors for competitive advantage.

Proprietary Information

Confidential business information that provides an enterprise with a competitive edge, such as patents, trade secrets, and special recipes.

Transnational Consumers

Consumers who transcend their local markets and make purchases based on global rather than national preferences.

Middle-class Markets

Consumer segments comprising individuals or households with middle-range income levels, often targeted by businesses for their sizable purchasing power.