Question : Which factor is important in designing an appropriate capital structure?
Option 1: Return on investment
Option 2: Interest coverage ratio
Option 3: Cash flow position
Option 4: None of the above
Correct Answer: Return on investment
Solution : Return on investment is an important factor and designing and appropriate capital structure.
Hence, option A is correct.
Question : Which factor of capital structure explains how many times EBIT can repay interest obligation.
Question : ‘Debt Service Ratio’ is termed as -----
Question : ______________shows the relationship of profit (profit before interest and tax) with Capital Employed.
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