The company’s average cost of capital is ____________.
the average cost of equity shares and debentures
Incorrect Answerthe average cost of equity preference shares
Incorrect Answerthe average cost of shares and all sources of long-term funds
Correct Answerthe average cost of short term funds
Incorrect AnswerNone of the above
Incorrect AnswerExplanation:
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.
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By: Chetna Yaduvanshi