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Which of the Following Best Describes What the Cost of Capital

Question 76

Multiple Choice

Which of the following best describes what the cost of capital should reflect?


A) The cost of capital should reflect the average cost of the various sources of short-term funds a firm uses to acquire assets.
B) The cost of capital should reflect the average cost of the various sources of long-term bonds a firm uses to acquire fixed assets.
C) The cost of capital should reflect the average cost of the various sources of long-term funds a firm uses to acquire assets.
D) The cost of capital should reflect the average cost of the various sources of long-term capital, as well as supplier capital, the firm uses to acquire fixed assets.

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