Which of the following statements is true ? (A) Optimal capital structure means a particular arrangement of various components of the capital which is in tune with long-term objectives of the firm (B) Optimal capital str
CS Executive · Financial and Strategic Management · PYQS · December 2022
Which of the following statements is true ? (A) Optimal capital structure means a particular arrangement of various components of the capital which is in tune with long-term objectives of the firm (B) Optimal capital structure means a particular arrangement of various components of the capital which is in tune with short-term objectives of the firm (C) Optimal capital structure means a particular arrangement of various components of the capital which is in tune with both, long-term and short-term objectives of the firm (D) Optimal capital structure has nothing to do with objectives of the firm, and it is series of capital budgeting decisions that adheres the firm's objectives
Answer & Explanation:
Correct Answer: Option (C)
Official answer key: (C).
Topics: Financial Management
Related Questions in this Topic
- Assume that a firm has accurately calculated the net cash flows relating to an investment proposal. If the net present v...
- A firm has EBIT of ₹ 50,000. Market value of 10% debt is ₹ 80,000 and overall capitalization rate is 20%. Market value o...
- A firm has inventory turnover of 4 and cost of goods sold is ₹ 7,50,000. With better inventory management, the inventory...
- 80% of sales of ₹ 12,00,000 of a firm are on credit. It has a Receivable Turnover of 8. What is the Average collection p...
- A Company's Raw material storage period is 20 days; Finished goods storage period is 25 days; Receivables (Debtors) coll...