The Components of Cost of Capital Include All of the Following

question 56

Multiple Choice

The components of cost of capital include all of the following except

• A) the cost of debt
• B) the cost of preferred stock
• C) the cost of common stock and retained earnings
• D) the minimum rate of return

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Definitions:

Organizational Situations

Unique sets of conditions, circumstances, or contexts within which organizations operate, affecting decisions and actions.

Situational Approach

Characteristics of the organizational setting influence people’s attitudes and behaviour.

Personality Characteristics

Enduring traits or qualities that describe an individual's typical behaviors and attitudes.

Activation Theory

A theory suggesting that effectiveness in activities and performance can be enhanced through the arousal or activation of the central nervous system.