Question 14 Consider the below mentioned statements: 1. A debt-equity ratio of 2:1 indicates that…
| Question 14 |
Consider the below mentioned statements: 1. A debt-equity ratio of 2:1 indicates that for every 1 unit of equity, the company can raise 2 units of debt. 2. The cost of floating a debt is greater than the cost of floating an equity issue. State True or False:
| A | 1-True, 2-True |
| B | 1-False, 2-True |
| C | 1-False, 2-False |
| D | 1-True, 2-False |
