Which of the Following Is Not Considered a Capital Component

question 45

Multiple Choice

Which of the following is not considered a capital component for the purpose of calculating the weighted average cost of capital as it applies to capital budgeting?

• A) Long-term debt.
• B) Ordinary shares.
• C) Short-term debt.
• D) Preference shares.
• E) All of the above are considered capital components for WACC and capital budgeting purposes.

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Definitions:

Psychodynamic

A psychological theory or approach that focuses on the dynamic interplay between the conscious and unconscious mind, and how this affects behavior.

Cognitive

Pertaining to the mental processes involved in gaining knowledge and comprehension, including thinking, knowing, remembering, judging, and problem-solving.

Behavior

The actions or reactions of an organism or system, often in response to its environment.

Family Therapy

The treatment of a family unit as a whole, in which the main focus is on family dynamics and communication.