Which of the Following Is Not a Component Used in Calculating

question 46

Multiple Choice

Which of the following is not a component used in calculating the cost of capital?

• A)The cost of short-term debt
• B)The cost of long-term debt
• C)The cost of retained earnings
• D)The cost of preferred stock
• E)The cost of common stock

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Definitions:

Subtractive Rule

When making attributions about the influence of personal dispositions on a behavior, the observer subtracts the perceived impact of situational forces from the personal disposition implied by the behavior itself.

Situational Forces

External factors or circumstances that influence an individual's behavior and decision-making in a given context or situation.

Dispositional Factors

Internal attributes or traits that influence an individual's behavior and actions.

Schemas

Cognitive frameworks or structures that help individuals organize and interpret information based on their experiences.