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Cost of floating an equity issue

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Reference no: EM131066570

Consider the below mentioned statements: 1. A debt-equity ratio of 2:1 indicates that for every 1 unit of equity, the company can raise 2 units of debt. 2. The cost of floating a debt is greater than the cost of floating an equity issue. State True or False:

a) 1-True, 2-True

b) 1-False, 2-True

c) 1-False, 2-False

d) 1-True, 2-False

Reference no: EM131066570

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