Question
For a large infrastructure project, which of the
following is typically the MOST expensive source of finance?Solution
Equity capital is the most expensive because equity shareholders bear the highest risk. In case of liquidation, they are paid last. To compensate for this risk, they expect a higher rate of return than debt holders. Furthermore, dividends paid to equity shareholders are not tax-deductible, whereas interest on debt is, making the effective cost of debt lower. Government Grants (E) are the cheapest as they are non-repayable.
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7 years ago, Meera’s age was equal to the Heena’s present age. The sum of Meera’s age 10 years from now and Heena’s age 5 years ago is 94 yea...
The ratio of the present age of 'I' to that of 'J' is 7:9. If eight years hence, the ratio of their ages will become 9:11, find the sum of their ages, e...
The sum of the ages of two persons is 60 years. In 5 years, the ratio of their ages will be 4:5. Find their present ages.
