Cost of Equity Share Capital is more than cost of Debt because : – McqOptions

MCQOPTIONS

1.	Cost of Equity Share Capital is more than cost of Debt because :
A.	Equity shares are not easily saleable.
B.	Equity shares do not provide the fixed dividend rate.
C.	Generally the face value of equity shares is less than the face value of debentures.
D.	Equity shares have high risk than debts.
Answer» E.

Discussion

No Comment Found

Related MCQs

Cost of Equity Share Capital is more than cost of Debt because :
A company issues 10% irredeemable preference shares. The face value per share is Rs. 100, but the issue price is Rs. 95. What is the cost of preference share?
Assertion A): According to Net Income (NI) approach, capital structure decision is relevant in the valuation of firm.Reason R): A firm can change its total value and its overall cost of capital by change in the degree of leverage in its capital structure.In the context of the above two statements, which one of the following options is correct?