Business Studies True/False

If debt service coverage ratio is high then company can have more debt

A company employs more of debt securities in its capital structure if company is sure of generating enough cash inflows.

Capital structure means the portion of current assets and current liabilities.

If a company follows labour intensive technique in production, they will go for less requirement of fixed capital.

Investment in current assets for longer duration is called fixed capital

Easy access to capital market allows firms to give more dividend.

Firms having stable earnings prefer to give less dividend.

Firms can avoid Floatation Cost by raising funds through loan.

If tax rate is high, firms prefer to give high dividend.

Financial management and financial planning are synonyms of each other.