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Examveda

The company’s average cost of capital is ____________.

A. the average cost of equity shares and debentures

B. the average cost of equity preference shares

C. the average cost of shares and all sources of long-term funds

D. the average cost of short term funds

Answer: Option C

Solution(By Examveda Team)

The company’s average cost of capital is the average cost of shares and all sources of long-term funds. A long-term investment is an account on the asset side of a company's balance sheet that represents the company's investments, including stocks, bonds, real estate and cash. Long-term investments are assets that a company intends to hold for more than a year.

This Question Belongs to Commerce >> Financial Management

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