Question

Generally the least expensive source of longminus term capital is​ ________. A. retained earnings B. longminus term debt C. preferred stock D. common stock

Answer 1

Answer:B. Longminus term debt.

Explanation: Longminus term capital are simply debts with over one year maturity. They are referred to as a company's debt or liabilities which will not become due within one year of the balance sheet date. The common sources of long-term fund or capital includes; preferred stock, common stock, retained earning, long-term debt. Considering the interest rate and the repayment time frame, longminus term debt are generally least expensive.