Q.
1
|
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)