Which of the Following Is Typically Not Treated as One

question 7

Multiple Choice

Which of the following is typically not treated as one of the components of capital in cost of capital schedule calculations?

• A)long-term debt
• B)short-term debt
• C)common equity
• D)preferred stock

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Definitions:

Professional Corporations

A type of corporation for professionals (such as lawyers, doctors, and accountants) that offers certain tax and legal advantages.

Public Corporations

Entities established by a government to undertake commercial activities on behalf of the government.

Nonprofit Corporations

are legal entities organized for purposes other than generating profit, where surplus revenues are reinvested in the entity's mission rather than distributed to shareholders.

Articles of Incorporation

The document filed with a governmental body to legally document the creation of a corporation, outlining its structure, purpose, and regulations.