Higher Debt-Equity Ratio Results in:

Lower Financial Risk

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Higher Degree of Operating Risk

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Higher Degree of Financial Risk

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Higher EPS

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is C
Higher Degree of Financial Risk

A correct answer is option (C) Higher Degree of Financial Risk.

A higher debt-equity ratio results in a higher degree of financial risk.

Suggest Corrections

Similar questions

Higher working capital usually results in

(a) higher current ratio, higher risk and higher profits

(b) lower current ratio, higher risk and profits

(d) lower equity, lower risk and higher profits

Higher debt-equity ratio results in:

(\frac{D e b t}{E q u i t y})

Higher debt equity ratio (Debt/Equity) results in Equity

Higher debt-equity ratio results in:

(a) Lower financial risk

(b) Higher degree of operating risk

(d) Higher EPS

Join BYJU'S Learning Program