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Commerce · Q169

Business Finance

Graduate and Post Graduate · Commerce · question 169

Q169

If a company goes for a new issue of debentures, what is the impact of such development? 1. The volatility of the returns of equity in relation to a market index is likely to be affected. 2. The beta may rise. 3. The gearing ratio will rise.

A.
1 and 2
B.
2 and 3
C.
1 and 3
D.
1, 2 and 3
Answer

Answer: Option D

Solution

Answer: Option D
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