I mainly use Becker & Wiley study sources. I summarized topics/details into my original notes which also consist of MC (by topics) numbers on side. I believe this is a way to know angles how the topic is questioned. Becker & Wiley sometimes provide similar or same questions. However, its solutions or ways to come answers are different. I really need your experience to break these issues I have. I do not intend to criticize text. I just want to pass CPA exam. To do so, I should not miss any MC I am facing right now. Your help is greatly appreciated.

Similar/Same MC #1: I believe cost of capital consists of ST and LT elements to be used for LT investment decision. How come its answer is different? I need second opinion…Pls help..

Becker: Question CPA-03427
The theory underlying the cost of capital is primarily concerned with the cost of:
a.Long-term funds and old funds.
b.Short-term funds and new funds.
c.Long-term funds and new funds.
d.Any combination of old or new, short-term or long-term funds.
Choice "d" is correct. The cost of capital considers the cost of all funds - whether they are short-term, long-term, new or old. Choices "a", "b", and "c" are incorrect, per above.

Wiley TestBank: FINM-0020
The theory underlying the cost of capital is primarily concerned with the cost of

A: Long-term funds and old funds.
B: Short-term funds and new funds.
C: Long-term funds and new funds.
D: Any combination of old or new, short-term or long-term funds.
Answer Explanations

A: This answer is incorrect. Refer to the correct answer explanation.
B: This answer is incorrect. Refer to the correct answer explanation.
C: Answer C is correct. The theory underlying cost of capital is related to existing long-term financing and obtaining new long-term financing.
D: This answer is incorrect. Refer to the correct answer explanation.