JOIN ADRE 2.0 Telegram Group

Commerce Short Question | Gkseries

Question

Which of the following is an implicit cost of increasing proportion of debt of a company ?

A P.E. Ratio of the company would increase.
B Rate of return of the company would decrease
C Tax-shield would not be available on new debts.
D Equity shareholders would demand higher return

Answer & Explanation

Answer:Equity shareholders would demand higher return

Advertisement
Article and Schedule Quiz Start Test!

DOWNLOAD CURRENT AFFAIRS PDF FROM APP

ADRE 2.0 FULL LENGTH MOCK TEST

Take Mock Tests

Missiles Mock Test Start Test!
SSC MTS Mock Test Start Test
IBPS CLERK MOCK TEST Start Test
SSC MTS 2022 JULY 26 Shift 1 (ENGLISH) Start Test!
SSC GD Previous Year Paper 2021 Nov 17 Shift - I (Hindi) Start Test!
SSC CGL Tier - 1 PYP 2022 April 21 Shift- 1 (ENGLISH) Start Test!
MPSC PAPER I MOCK TEST 1 (ENGLISH) Start Test!
IB Security Assistant Mock test 1 (english) Start Test!
UP POLICE CONSTABLE MOCK TEST 1 Start Test!
DELHI POLICE CONSTABLE MOCK TEST 1 (HINDI) Start Test!
Advertisement
Assam Direct Recruitment Test Series