Match the LIST-I with LIST-II
LIST-I (Decision) LIST-II (Factors affecting the decision) A. Financing Decision I. Interest Coverage Ratio (ICR) B. Dividend Decision II. Cash Flow Position of the Company C. Capital Structure III. Choice of Technique D. Fixed Capital IV. Shareholders' Preference
Choose the correct answer from the options given below:
Match the LIST-I with LIST-II
| LIST-I (Decision) | LIST-II (Factors affecting the decision) |
|---|---|
| A. Financing Decision | I. Interest Coverage Ratio (ICR) |
| B. Dividend Decision | II. Cash Flow Position of the Company |
| C. Capital Structure | III. Choice of Technique |
| D. Fixed Capital | IV. 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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