Question
All else being equal, an infusion of additional equity
capital into a company will generally:Solution
• When a company raises fresh equity, its net worth increases. • This reduces the debt-to-equity ratio, strengthens capital adequacy, and improves the company’s ability to absorb financial shocks. • From a lender’s perspective, higher equity means lower credit risk, as the company has more owner-funded capital at stake. • Hence, the infusion of equity positively impacts the credit profile. Thus, the correct answer is that equity infusion improves the company’s credit profile.
The monthly amount spent on loan instalments is what percent of his household expenses?
What will be the Profit of Anuj is approximately what percent of total profit?
What is the total of the monthly amount Mr. Sumit spends on his family and the monthly amount he spends on other households expenses?
Suppose profit at the end of the year is Rs. 537000, then what will be the difference between profit share of Binod and Chintu is?
Relevant for Exams:
