Which of the Following Is NOT a Capital Component When

question 76

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

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Definitions:

Usury Laws

Regulations governing the maximum interest rate that can be charged on loans, intended to protect borrowers from excessively high rates.

Rent Control

Government-imposed restrictions on the maximum rent that landlords can charge tenants, usually with the aim of making housing more affordable.

Price Ceiling

A price ceiling is a government-imposed limit on how high a price can be charged for a product or service, intended to protect consumers from excessive costs.

Price Ceiling

A legally established maximum price that can be charged for a product or service, often set by government to prevent prices from reaching excessively high levels.