Q10
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
AnswerD.
the average cost of short term funds
Answer: Option C
Solution
Answer: Option C
Solution:
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.