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Match the following components with the given information

List IList II
A. Capital structureI. Speculator who expects the prices to go down
B. BearII. Speculator expecting a rise in the prices
C. BullIII. Proportion of debt and equality in total Capital
D. Shareholder's WealthIV. Maximisation of the market value of equity shares

Solution

Correct Option: 1

Capital structure is the proportion of debt and equity in total capital (A-III). A bear is a speculator who expects prices to go down (B-I). A bull is a speculator expecting a rise in prices (C-II). Shareholder's wealth refers to maximisation of the market value of equity shares (D-IV). The correct match is A-III, B-I, C-II, D-IV.

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