Statement I: Debt equity ratio of 2:1 reflects that 2 units of debt are raised by a company for 1 unit of equity.
Statement II: Cost of raising equity is relatively higher than cost of raising debt.
Both the statements are correct
Both the statements are incorrect
Only Statement II is correct
Only statement I is correct
Boost your performance with adaptive practice tests
Practice every concept in the syllabus
Compare your speed and accuracy with your peers
Download the app and practice on the go