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Match the LIST-I with LIST-II

LIST-I (Decision)LIST-II (Factors affecting the decision)
A. Financing DecisionI. Interest Coverage Ratio (ICR)
B. Dividend DecisionII. Cash Flow Position of the Company
C. Capital StructureIII. Choice of Technique
D. Fixed CapitalIV. Shareholders' Preference

Choose the correct answer from the options given below:

Solution

✅ Correct Option: 2

Cash flow position of the company affects the financing decision, since strong cash flows support the use of debt (A-II). Shareholders' preference is a factor in the dividend decision (B-IV). Interest Coverage Ratio affects capital structure by indicating debt-servicing ability (C-I). Choice of technique affects fixed capital requirements (D-III). Hence A-II, B-IV, C-I, D-III.

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