Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Financial Markets

Question:

Match List I with List II

List I List II
A. During bullish phase equity shares are more easily sold I. Cost of debt
B. Number of times earnings before interest and taxes covers the interest obligation II. Under SEBI guidelines
C. Regulatory framework III. Stick market condition
D. Expected rate of return by debt providers IV. Interest coverage Ratio

Choose the correct answer from the options given below :

Options:

A-III, B-IV, C-II, D-I

A-III, B-II, C-IV, D-I

A-II, B-I, C-III, D-IV

A-I, B-II, C-IV, D-III

Correct Answer:

A-III, B-IV, C-II, D-I

Explanation:

The correct answer is option (1) : A-III, B-IV, C-II, D-I

A. During a bullish phase, equity shares are more easily sold, which corresponds to C. Stock market condition. When the stock market is in a bullish phase, it's generally easier to sell equity shares.

B. Number of times earnings before interest and taxes cover the interest obligation corresponds to III. Coverage Ratio. This ratio measures the company's ability to cover its interest expenses.

C. Stock market condition corresponds to II Under SEBI guidelines. SEBI (Securities and Exchange Board of India) is a regulatory authority that oversees the stock market and sets guidelines for its operation.

D. Expected rate of return by debt providers corresponds to I Cost of debt. The expected rate of return by debt providers is related to the cost of debt financing for a company.