Which of the Following Is NOT a Capital Component When

question 13

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) Common stock "raised" by reinvesting earnings.
• C) Common stock raised by new issues.
• D) Preferred stock.
• E) Long-term debt.

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Definitions:

Recall

The act of retrieving information or events from the past in one's memory.

Nonsense Syllables

Random strings of letters without inherent meaning, often used in memory and learning experiments to study the processes of human cognition.

Ebbinghaus

Refers to Hermann Ebbinghaus, a psychologist known for his research on memory, specifically the forgetting curve and the spacing effect.

Multiple-Choice

A type of question or survey format that presents respondents with several answers and requires them to select the correct one.