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WorksheetsCapital Structure
Total questions: 5
Worksheet time: 4mins
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
