Capital Structure

The proportion of debt in the overall capital is also called __________

• Capital Structure

• Financial Leverage

• Trading On equity

• Cost of funds

The increase in profit earned by the equity shareholders due to the presence of fixed financial charges like interest is called ______

• Financial leverage

• Debt Coverage

• Interest coverage

• Trading on Equity

If return on investment is 10 % and rate of interest is 12% then which source of fund should be used for maximizing shareholder's wealth.

• Debt

• Equity

The EBIT of ABC ltd is Rs 8,00,000. Rate of Interest is 10% and tax is 30%. Total capital employed is Debt 50,00,000. Equity- 30,00,000 ( price per share is RS 10). Calculate EPS

• 21

• 2.1

• 1.03

• 0.93

Which component of capital structure determines the financial risk?

• Equity

• Debt

• Retained Earnings