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
6003 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

reasons for doing mba

11 Answers Idbi Bank,

Will I Have To Go To Court?

0 Answers

what is Option trading?

0 Answers

How does companies act protect the interest of debenture holders?