Question

(5)
In fund raising decisions, one should keep in view :
(a) Cost of various funds and financial risk.
(b) Advantages and disadvantages of debt component in capital
mix.
(c) Impact of taxation on EPS
(d) All of the above.​

Answer 1

Answer:

In fund raising decisions, one should keep in view :

Advantages and disadvantages of debt component in capital mix.

Hope it helps you

Answer 2

In fund raising decisions, one should keep in view: (d) All of the above.

Explanation for the answer:

• In fund raising decisions, one should keep in mind the following factors:
• The cost of funds and the financial risk associated with the funds from various sources.
• Determination of the debt-equity mix of the funds.
• The advantages and disadvantages of debt factors in the capital mix.
• Impact of taxation and depreciation in maximization of earnings per share to the equity holders.
• Hence, the correct answer among all the options is option (d) All of the above.

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