Which of the Following Statements Is NOT Correct Regarding the Equity

question 52

Multiple Choice

Which of the following statements is NOT correct regarding the equity portion of the WACC?

• A)Preferred equity is separate from common equity
• B)Market values rather than book values should be used
• C)Retained earnings is not included
• D)Both equity and debt have a tax shield

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Definitions:

Affective

Pertaining to emotions or feelings; capable of eliciting or influenced by emotional responses.

Consciousness

The state of being aware of and able to think about one's own existence, sensations, thoughts, surroundings, etc.

Posthumanism

A philosophical perspective that explores the boundaries of what it means to be human, often considering the impact of technology and critically reassessing the humanist tradition.

Presumption Theory

A legal or cognitive framework that operates on the principle of assuming a fact is true until it is disproven or countered by evidence.