Calculating the weighted average cost of capital as it


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. Common stock.

C. Accounts payable.

D. Preferred stock.

E. All of the above are considered capital components for WACC and capital budgeting purposes.

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Financial Management: Calculating the weighted average cost of capital as it
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