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LenaWriter [7]
3 years ago
12

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

l budgeting? a. Retained earnings. b. Preferred stock. c. Accounts payable. d. Long-term debt. e. Common stock.
Business
1 answer:
slavikrds [6]3 years ago
6 0

Answer:

c. Accounts payable.

Explanation:

The capital structure is a mix of debt and the equity

And, the formula to compute the weighted average cost of capital is shown below:

= Weightage of debt × cost of debt × ( 1- tax rate) + (Weightage of preferred stock) × (cost of preferred stock) + (Weightage of  common stock) × (cost of common stock)

Since the account payable is the current liabilities and therefore it is not use for computing the WACC.

You might be interested in
What would bill fall under, he applied and acquired for a new credit card and uses it regularly?
lidiya [134]

If  he applied and acquired for a new credit card and uses it regularly he will fall under: Voluntary.

<h3>What is credit card?</h3>

Credit card can be defined as the card that enables the card holder to carryout transactions such as purchases online in which the holder is expected to payback the amount used for the purchases.

If a obtain a new credit card which he use often or frequently, bill will tend to fall under voluntary because he voluntary applied for the credit card without being comply to do so.

Therefore bill will fall under voluntary.

Learn more about credit card here:brainly.com/question/8432538

#SPJ12

4 0
2 years ago
A year​ ago, the Really Big Growth Fund was being quoted at an NAV of ​$21.98 and an offer price of ​$22.90. ​Today, it's being
Allisa [31]

Answer:

12.75%

Explanation:

Given that

Net assets value = $24.19

Dividend and capital gain distribution = $1.63

Offer price = $22.90

The computation of Holding period return is shown below:-

= (Net assets value + Dividend and capital gain distribution - Offer price) ÷ Offer price

= ($24.19 + $1.63 - $22.90) ÷ $22.90

= $2.90 ÷ $22.90

= 12.75%

So, for computing the holding period return we simply applied the above formula.

5 0
3 years ago
A minimum acceptable rate of return for an investment decision is called the: Multiple Choice Internal rate of return. Average r
spayn [35]

Answer:

Hurdle rate of return.

Explanation:

A hurdle rate can be regarded as minimum rate of return that is been required by an investor or manager

on a particular project or investment.

The hurdle rate gives the description of the appropriate compensation as regards level of risk present. There are

higher hurdle rates associated with riskier projects.

It should be noted that A minimum acceptable rate of return for an investment decision is called the Hurdle rate of return.

6 0
3 years ago
You are planning a store on a large lot. Your budget only allows for 800 linear feet of walls. What is the maximum square
Galina-37 [17]

Answer:

The correct solution is "40,000 sq/ft".

Explanation:

The given value is:

Feet of walls

= 800 ft

Sides,

= 4

Now,

The square store will be:

= \frac{800}{4}

= 400 \ ft

The max footage of square will be:

= 400\times 100

= 40,000 \ sq/ft

8 0
3 years ago
A customer touch point for abacus airlines would be an item such as ________. a mechanic's ability to service the airplanes the
eduard
<span>A customer touch point for abacus airlines would be an item such as reservation desk. 

A customer touch point is a point in the process where a consumer and the organization exchange information, finish providing the service, or handle transactions. At the reservation desk, the customer and the business are focusing on the business and service transactions.  </span>
3 0
3 years ago
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