Which helps in deciding whether funds should be raised by internal equity or by borrowings>

Related MCQs

• ----- is the rate of return that the company must earn on the net funds raised, in order to satisfy the equity shareholders’ demand for return
• 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:
• The term optimal capital structure‘ implies that combination of external equity and internal equity at which ………
• The capital raised through equity share is ---------- for the company
• Borrowings carry -----------
• EVA= ___________ - (Equity capital x % of cost of equity capital
• Equity shares of phonex Ltd are quoted in the market at Rs17. The dividend expected a year hence is Rs1.50. The expected rate of dividend growth is 8%. The cost of equity capital to the company is
• If the weighting of equity in total capital is 1/3, that of debt is 2/3, the return on equity is 15% that of debt is 10% and the corporate tax rate is 32%, what is the Weighted Average Cost of Capital (WACC)?
• Which of the following helps analysing return to equity Shareholders?
• Debt Equity Ratio is 3:1,the amount of total assets Rs.20 lac,current ratio is 1.5:1 and owned funds Rs.3 lac.What is the amount of current asset?