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.
Join The Discussion