Question
For a company, the cost of issuing new equity shares is
generally higher than the cost of issuing debt because:Solution
Flotation costs (underwriting, legal, brokerage fees) are typically higher for equity issues than for debt. More importantly, dividend payments to shareholders are made from after-tax profits and are not tax-deductible for the company, whereas interest on debt is a tax-deductible expense, lowering the effective cost of debt.
Which of the following diagrams indicates the best relationship among females, girls and brides?
Which of the following letter-clusters will replace the question mark (?) in the given series?
JV, MU, OT, RS, TR, ?
Which is the one that does not belong to the group?
E, F, G, H, I and J are sitting around a circular table facing the center. J sits immediate left of I. G sits second to the right of I. E sits second to...
Six people are sitting around a circular table facing the centre. P sits second to the left of Q. S is an immediate neighbour of both Q and U. T sits se...
Six people - C, D, E, X, Y, and Z, are of different ages. Only one person is younger than Y. X is older than E but younger than D. E is older than Y. Ne...
Who sits at the extreme right end of the row?
Who among the following likes PINK?
"Starting from the beginning, where is Rahul positioned in the line of 28 individuals if he is seated at the 5th position from the last?"
There are six boxes, namely P, Q, R, S, T, U, which are kept one above the other. R is kept immediately above P. T is kept immediately above U. Only two...
