CBSE Class 12 Business Studies 2023 Outside Delhi set 1

Question : 14 of 45

Marks: +1, -0

When the proportion of debt and equity is such that it results in an increase in the value of equity share the _______ is/are said to be optimal.

working capital
fixed capital
capital structure
Both (a) and (b)

Solution:

(c) capital structure
When a company has an optimal capital structure, the proportion of debt and equity results in an increase in the value of equity share.

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