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Problem:

Which of the following is NOT a capital component when calculating the weighted average cost of capital (WACC)for use in capital budgeting?

  • Long-term debt.
  • Accounts payable.
  • Retained earnings.
  • Common stock.
  • Preferred stock.

Note: Please show how you came up with the solution.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91163311

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