Which of the Following Is NOT a Capital Component When

question 12

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.

---

Definitions:

Wagner Act

Also known as the National Labor Relations Act of 1935, this law established the rights of employees to form unions, engage in collective bargaining, and participate in strikes and other concerted activities.

Unfair Labor Practices

Actions by employers or unions that violate workers' rights or the laws governing labor relations.

Wagner Act

A foundational U.S. law enacted in 1935 to protect workers' rights to organize and to promote collective bargaining.

Secondary Boycott

A form of protest where a group (usually a labor union) refuses to do business with or work for other companies that are associated with the primary target of a labor dispute, but not directly involved in it.