Q492
Match the following. List-I (Capital Structure Principles) List-II (Features) a. Cost principle 1. Management chooses such combination of sources of financing, which can easily adapt to changes b. Risk principle 2. While designing the structure, the finance manager remembers that existing management control and ownership remains undisturbed c. Control principle 3. Reliance is placed more on equity for financing capital requirements than excessive use of debts d. Flexibility principle 4. Cost of capital structure should be minimised and Earning Per Share (EPS) should be maximised
Match the following.
| List-I (Capital Structure Principles) | List-II (Features) |
| a. Cost principle | 1. Management chooses such combination of sources of financing, which can easily adapt to changes |
| b. Risk principle | 2. While designing the structure, the finance manager remembers that existing management control and ownership remains undisturbed |
| c. Control principle | 3. Reliance is placed more on equity for financing capital requirements than excessive use of debts |
| d. Flexibility principle | 4. Cost of capital structure should be minimised and Earning Per Share (EPS) should be maximised |
A.
a-2, b-1, c-4, d-3
B.
a-3, b-1, c-4, d-2
C.
a-3, b-4, c-1, d-2
D.
a-4, b-3, c-2, d-1
AnswerAnswer: Option D
Solution
Answer: Option D
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