Higher debt-equity ratio results in:
(a) Lower financial risk
(b) Higher degree of operating risk
(c) Higher degree of financial risk
(d) Higher EPS
Higher debt-equity ratio results in a higher degree of financial risk.
Higher working capital usually results in:
(a) Higher current ratio, higher risk and higher profits
(b) Lower current ratio, higher risk and profits
(c) Higher equity, lower risk and lower profits
(d) Lower equity, lower risk and higher profits
Higher working capital usually results in
(a) higher current ratio, higher risk and higher profits
(b) lower current ratio, higher risk and profits
(c) higher equity, lower risk and lower profits
(d) lower equity, lower risk and higher profits
Financial leverage is called favourable if
(a) Return on investment is lower than the cost of debt
(b) Rol is higher than the cost of debt
(c) Debt is easily available
(d) If the degree of existing financial leverage is low
(b) ROI is higher than the cost of debt
Higher debt equity ratio (Debt/Equity) results in Equity