Business Studies · Financial Management
Consider the following statements and select the correct option: Statement (I): A debt-equity ratio of 2 : 1 indicates that for every 1 unit of equity, the company has raised 2 units of debt. Statement (II): The cost of floating an equity issue is lesser than the cost of floating a debt.
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1Statement (I) is true and Statement (II) is false.✓
- 2Statement (I) is false and Statement (II) is true.
- 3Both Statements (I) and (II) are true.
- 4Both Statements (I) and (II) are false.
Correct answer
Statement (I) is true and Statement (II) is false.
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Business Studies?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Financial Management MCQs →Want more practice questions on Financial Management?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Business Studies · Financial Management