Question

When the proportion of debt and equity is such that it results in an increase in the value of equity share the ______ is/are said to be optimal.

पर्याय

• working capital

• fixed capital

• capital structure

• Both (a) and (b)

Answer 1

When the proportion of debt and equity is such that it results in an increase in the value of equity share the capital structure is/are said to be optimal.

Explanation:

The ratio of debt to equity increases the value of equity shares when a company has an ideal capital structure.