List I

List II

Capital Structure Preposition Description(s)
 (A) Target Capital Structure (I) Expected yield on the equity capital is equal to the pure equity return plus a premium
 (B) Optimum Capital Structure (II) Its refers to the perceived costs due to increased ratio of debt in the firm
 (C) Cost of financial distress (III) It is the debt ratio the firm strives to achieve
 (D) MM preposition II (IV) It is the debt-equity ratio that maximizes the value of the firm.

Choose the correct answer from the options given below:

  • A
    (A)-(II) (B)-(III) (C)-(I) (D)-(IV)
  • B
    (A)-(III) (B)-(IV) (C)-(II) (D)-(I)
  • C
    (A)-(IV) (B)-(II) (C)-(III) (D)-(I)
  • D
    (A)-(I) (B)-(III) (C)-(II) (D)-(IV)