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Which one of the following would be considered a capital budgeting decision? Pla

ID: 2817706 • Letter: W

Question

Which one of the following would be considered a capital budgeting decision?

Planning to issue common stock rather than issuing preferred stock

Deciding to expand into a new line of products, at a cost of $5 million

Repurchasing shares of common stock

Issuing debt in the form of long-term bonds

Which one of the following would be considered a capital budgeting decision? Multiple Choice Planning to ssue common stock rather than issuing praferred stock Ceciding to expand into e new line of products, et a cost of $5 milion Repurchasing shares of comman stock lssuing debt in the form of long-terrn barnds

Explanation / Answer


Correct option is > Deciding to expand into a new line of products, at a cost of $5 million

The capital budgeting decision is form a decision about taking new projects, accepting or rejecting its cost and checking viability of the project.

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