CUET Business Studies - What is an optimal capital structure for ABC Ltd.? | PYQs + Solutions

CUET Business Studies 2025 26 May Shift 2

Business Studies

Hard

100% Equity

100% Debt

A mix of debt and equity to minimize cost of capital

Equal proportion of debt and equity

✅ Correct Option: 3

Related questions:

27 May Shift 2

Which among the following refers to the increase in profit earned by the equity shareholders due to the presence of fixed financial charges?

27 May Shift 2

Which concept of financial management affects both the profitability and the financial risk?

3 June Shift 1

Match List-I with List-II

List-I	List-II
Concept	Equation
(A) Financial Leverage	(I) (Profit after tax+depreciation+interest+non cash expenses)/ (pref dividend+interest+repayment obligation)
(B) Net Working Capital	(II) Debt/Equity
(C) Interest Coverage Ratio	(III) Current Assets - Current Liabilities
(D) Debt service coverage ratio	(IV) EBIT/Interest

Choose the correct answer from the options given below:

CUET Business Studies 2025 26 May Shift 2 PYQs