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Firm's Cost of Capital is the average cost of: a) Share Bonds & Debentures b) All sources c) Share capital d) All borrowings?

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Question added by Mohammed Asim Nehal , M Asim Nehal & Co , Chartered Accountants
Date Posted: 2015/07/10
Gayasuddin Mohammed
by Gayasuddin Mohammed , Advocate , Practicing Law before High Court at Hyderabad

I think it is option (B) All sources , cause it may be equity shares, bonds, debentures, any borrowings,etc.

b) All Sources. Thus both equity and debt (liability) sources since a business source of capital may be equity and Debts

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