Debt Financing is a cheaper source of finance because of:

Related MCQs

• Debt Financing is a cheaper source of finance because of
• 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:
• Financing a long-lived asset with short-term financing would be
• Advantage of Debt financing is
• NOI Approach advocates that the degree of debt financing is:
• Debt to Total Assets of a firm is .2. The Debt to Equity boo would be:
• In case of Net Income Approach, when the debt proportion is increased, the cost of debt:
• Debt-to-total assets (D/TA) ratio is .4. What is its debt-to-equity (D/E) ratio?
• 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)?
• Cost of Equity Share Capital is more than cost of debt because: