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

Question

Quizplus · Accepted Answer

Short-term debt is typically not included as a component of capital in cost of capital schedule calculations since it is a form of financing that is not considered as a long-term source of funding for the business. The other options - long-term debt, common equity, and preferred stock - are commonly used components of capital that are factored into the cost of capital equation.

Which of the Following Is Typically Not Treated as One