Q333
Match the following. List-I (Measurements of Cost of Capital) List-II (Features) a. Cost of debt 1. Its calculation is relatively difficult task b. Cost of preference share capital 2. The amount of interest payment should be matched with the net cash proceeds of the debt c. Cost of equity share capital 3. The shareholders have to incur some brokerage cost for investing the dividends received d. Cost of retained earnings 4. The rate of dividend payable on these shares is fixed well in advance at the time of their issue
Match the following.
| List-I (Measurements of Cost of Capital) | List-II (Features) |
| a. Cost of debt | 1. Its calculation is relatively difficult task |
| b. Cost of preference share capital | 2. The amount of interest payment should be matched with the net cash proceeds of the debt |
| c. Cost of equity share capital | 3. The shareholders have to incur some brokerage cost for investing the dividends received |
| d. Cost of retained earnings | 4. The rate of dividend payable on these shares is fixed well in advance at the time of their issue |
A.
a-4, b-3, c-1, d-2
B.
a-2, b-3, c-4, d-1
C.
a-3, b-4, c-2, d-1
D.
a-2, b-4, c-1, d-3
AnswerAnswer: Option D
Solution
Answer: Option D
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