Which of the following combination of factors affecting capital structure are correct ? (A) Cost of debt, ROI, floatation costs (B) Floatation costs, availability of raw material (C) Level of competition, production cycle (D) Cost of equity, Interest coverage ratio (E) Risk consideration, flexibility Choose the correct answer from the options given below :

Question

Option 1: (B), (C), and (E) only

Option 2: (A), (D), and (E) only

Option 3: (A), (B), and (D) only

Option 4: (B), (C) and (D) only

AfterBoards · Accepted Answer

The answer is '(A), (D), and (E) only'. View full solution:

List - I	List - II
(A) Production cycle	(I) Is reflected in a higher inventory turnover ratio
(B) Credit allowed	(II) Reduces the need of working capital
(C) Operating efficiency	(III) Increases the need of working capital
(D) Credit availed	(IV) Time span between receipt of raw material and their conversion into finished goods

LIST I	LIST II
A. Interest Coverage Ratio	I. Rate of return
B. Choice of Technique	II. Fixed Capital
C. Credit Allowed	III. Capital structure
D. Capital budgeting decisions	IV. Working Capital

CUET Business Studies 2023 11 June Shift 3 PYQs

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