Practicing Success
Practicing Success
CUET Preparation Today
| Under which of the following situations, a company should not issue debt capital? |
When the cash flow condition of the company is strong. When the rate of tax is low. When the return on investment is high. When the interest coverage ratio is high. |
| When the rate of tax is low. |
| When tax rate is low, it is less favourable for the company to raise debt. |
