Question

The costliest of long-term sources of finance is __________________.

• A. Preference share capital
• B. Retained earnings
• C. Equity share capital
• D. Debentures
• E. Capital raised through private placement.

Answer 1

The correct option is A Preference share capital

Preference Share is the Costliest Long - term Source of Finance. The costliest long term source of finance is Preference share capital or preferred stock capital. It is the source of the finance. When it is compared to other source of long term sources.