UGC NET Exam  >  UGC NET Questions  >  Consider the below mentioned statements and s... Start Learning for Free
Consider the below mentioned statements and state the correct code.
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.
  • a)
    Both the Statements (I) and (II) are false.
  • b)
    Both the Statements (I) and (II) are true.
  • c)
    Statement (I) is false, and Statement (II) is true.
  • d)
    Statement (I) is true, and Statement (II) is false.
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
Consider the below mentioned statements and state the correct code.Sta...
The debt-to-equity ratio is a financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets. A D/E ratio of 2 indicates that the company derives two-thirds of its capital financing from debt and one-third from shareholder equity, so it borrows twice as much funding as it owns (2 debt units for every 1 equity unit).
Flotation cost is the total cost incurred by a company in offering its securities to the public. They arise from expenses such as underwriting fees, legal fees and registration fees. Flotation costs make new equity cost more than cost of floating a debt.
Free Test
Community Answer
Consider the below mentioned statements and state the correct code.Sta...
The debt-to-equity ratio is a financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets. A D/E ratio of 2 indicates that the company derives two-thirds of its capital financing from debt and one-third from shareholder equity, so it borrows twice as much funding as it owns (2 debt units for every 1 equity unit).
Flotation cost is the total cost incurred by a company in offering its securities to the public. They arise from expenses such as underwriting fees, legal fees and registration fees. Flotation costs make new equity cost more than cost of floating a debt.
Explore Courses for UGC NET exam
Consider the below mentioned statements and state the correct code.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.a)Both the Statements (I) and (II) are false.b)Both the Statements (I) and (II) are true.c)Statement (I) is false, and Statement (II) is true.d)Statement (I) is true, and Statement (II) is false.Correct answer is option 'D'. Can you explain this answer?
Question Description
Consider the below mentioned statements and state the correct code.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.a)Both the Statements (I) and (II) are false.b)Both the Statements (I) and (II) are true.c)Statement (I) is false, and Statement (II) is true.d)Statement (I) is true, and Statement (II) is false.Correct answer is option 'D'. Can you explain this answer? for UGC NET 2024 is part of UGC NET preparation. The Question and answers have been prepared according to the UGC NET exam syllabus. Information about Consider the below mentioned statements and state the correct code.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.a)Both the Statements (I) and (II) are false.b)Both the Statements (I) and (II) are true.c)Statement (I) is false, and Statement (II) is true.d)Statement (I) is true, and Statement (II) is false.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for UGC NET 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the below mentioned statements and state the correct code.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.a)Both the Statements (I) and (II) are false.b)Both the Statements (I) and (II) are true.c)Statement (I) is false, and Statement (II) is true.d)Statement (I) is true, and Statement (II) is false.Correct answer is option 'D'. Can you explain this answer?.
Solutions for Consider the below mentioned statements and state the correct code.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.a)Both the Statements (I) and (II) are false.b)Both the Statements (I) and (II) are true.c)Statement (I) is false, and Statement (II) is true.d)Statement (I) is true, and Statement (II) is false.Correct answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for UGC NET. Download more important topics, notes, lectures and mock test series for UGC NET Exam by signing up for free.
Here you can find the meaning of Consider the below mentioned statements and state the correct code.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.a)Both the Statements (I) and (II) are false.b)Both the Statements (I) and (II) are true.c)Statement (I) is false, and Statement (II) is true.d)Statement (I) is true, and Statement (II) is false.Correct answer is option 'D'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Consider the below mentioned statements and state the correct code.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.a)Both the Statements (I) and (II) are false.b)Both the Statements (I) and (II) are true.c)Statement (I) is false, and Statement (II) is true.d)Statement (I) is true, and Statement (II) is false.Correct answer is option 'D'. Can you explain this answer?, a detailed solution for Consider the below mentioned statements and state the correct code.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.a)Both the Statements (I) and (II) are false.b)Both the Statements (I) and (II) are true.c)Statement (I) is false, and Statement (II) is true.d)Statement (I) is true, and Statement (II) is false.Correct answer is option 'D'. Can you explain this answer? has been provided alongside types of Consider the below mentioned statements and state the correct code.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.a)Both the Statements (I) and (II) are false.b)Both the Statements (I) and (II) are true.c)Statement (I) is false, and Statement (II) is true.d)Statement (I) is true, and Statement (II) is false.Correct answer is option 'D'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Consider the below mentioned statements and state the correct code.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.a)Both the Statements (I) and (II) are false.b)Both the Statements (I) and (II) are true.c)Statement (I) is false, and Statement (II) is true.d)Statement (I) is true, and Statement (II) is false.Correct answer is option 'D'. Can you explain this answer? tests, examples and also practice UGC NET tests.
Explore Courses for UGC NET exam

Top Courses for UGC NET

Explore Courses
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev