Identify the pair which does not affect the choice of capital structure:( – Answer & Explanation | CUET Subject PYQ – Dubuddy

Identify the pair which does not affect the choice of capital structure:
(

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Shift 28/05/2023 3:30 PM - 6:30 PM

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A
Flexibility and Control
B
Cost of Equity and Goodwill
C
Risk consideration and ROI
D
Cost of debt and Floatation Cost
Correct answer

Correct Answer

Cost of Equity and Goodwill
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Detailed Explanation

Capital structure decisions focus on how a firm finances its operations through debt and equity, considering factors like costs, risks, control, and returns. Cost of equity directly affects this decision, but goodwill is an intangible asset related to reputation or brand value and does not influence how the company raises capital. Therefore, this pair does not impact the choice of capital structure.

 

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