CUET Business Studies 2026 11th May Shift 1 PYQs

Higher Debt-Equity Ratio results in ______

ABC Ltd. has debt equity ratio of 3:1, whereas XYZ Ltd. has debt equity ratio of 1:1. Name the advantage ABC Ltd will have over XYZ Ltd., when the rate of interest is lower than the rate of return on investment of the company.

The CFO of a company decides to maintain the capital structure as 1/2. The finance raised from owners and shareholders is Rs. 300 crore. How much debt financing does he need?