Manag., July-2018 – Q86

0. Consider the below mentioned statements and state the correct code of the statements being true or false.
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 the equity issue is lesser than the cost of floating a debt.

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