Which of the following should not be included in a firm's cost of capital estimation?
A)the cost of permanent sources of short-term debt
B)the cost of common stock
C)the cost of retained earnings
D)the cost of seasonal sources of short-term debt

Question

Quizplus · Accepted Answer

The cost of capital estimation should include the cost of long-term financing sources such as permanent short-term debt, common stock, and retained earnings. Seasonal sources of short-term debt are typically not included because they are not considered permanent sources of financing for the firm.

Which of the Following Should Not Be Included in a Firm's