raising funds throgh debt-equity in indian economy. if a firm is goint to use i

raising funds throgh debt-equity in indian economy.
if a firm is goint to use it & after year if depression is
continue in economy & it faces inflation currently.
their is a 50-50 risk on both.
what is the right choice?

Question Posted / neelam

2 Answers
6820 Views
I also Faced
E-Mail Answers

Answers were Sorted based on User's Feedback

raising funds throgh debt-equity in indian economy. if a firm is goint to use it & after year i..

Answer / guest

its better to have more of equity because if inflation
increase the interest rate also increase.

Is This Answer Correct ?

3 Yes

0 No

raising funds throgh debt-equity in indian economy. if a firm is goint to use it & after year i..

Answer / swaroop satyam .k.s

equity will be the best choice because the risk of the
company till the payment of interest on bonds is reduced so
that the company will not be in a serious position to pay
the debts off and risk in equity side will be till the
extent of investors expectations, which may lead the share
prices bit low in their market price as it is common in a
depression economy

Is This Answer Correct ?

2 Yes

0 No

Post New Answer

More Banking Finance Interview Questions

What are the Non Performing assets of a company

0 Answers IBPS,

How Does The Stress Test Account For Non-performing Loans?

0 Answers

What is crossing?

0 Answers Nabard,

Case Study:- Assume you are an insurance consultant dealing with an umbrella of insurance products of various insurance companies. you have been approached by the Dean of college to give presentation on the insurance titled "life insurance fulfils the needs of aperson". The presentation should include the various needs of person at different stages of life. you have been rrequested to include sufficient example to make the presentation more reachable.

0 Answers LIC,

What Are The Various Systems Of Accounting?

0 Answers BlackRock,

What is 'foreign bill'?

0 Answers

Who is a policyholder?

0 Answers LIC,

What Is Saving Account?

0 Answers

How do you deal with different stakeholders?

0 Answers Futures First,

What is portfolio investment?