Question : Which of the following statements is incorrect?
Option 1: The total risk depends on both the business risk and the financial risk.
Option 2: Issue of debt does not dilute the control of equity shareholders.
Option 3: Operating cost refers to the cost involved in issue of securities
Option 4: None of the above
Answer (1)
8th Jan, 2024
Correct Answer:
Operating cost refers to the cost involved in issue of securities
Solution : Floatation cost refers to the cost involved in issue of securities. The cost of raising finance from various source should be carefully estimated before making a choice.
Hence, option C is correct.
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