Match the following components with the given information. List I Lis…

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

List I	List II
A. Capital structure	III. Proportion of debt and equality in total Capital
B. Bear	I. Speculator who expects the prices to go down
C. Bull	II. Speculator expecting a rise in the prices
D. Shareholder's Wealth	IV Maximisation of the market value of equity shares

 

*Capital structure- One of the important decisions under financial management relates to the financing pattern or the proportion of the use of different sources in raising funds. On the basis of ownership, the sources of business finance can be broadly classified into two categories viz., ‘owners funds’ and ‘borrowed funds’. Capital structure refers to the mix between owners and borrowed funds. Deciding about the capital structure of a firm involves determining the relative proportion of various types of funds.

* BULLS and BEARS – The term does not refer to animals but to market sentiment of the investors. A Bullish phase refers to a period of optimism and a Bearish phase to a period of perssimism on the Bourses.

* Shareholder's Wealth- The primary aim of financial management is to maximise shareholders’ wealth, which is referred to as the wealth-maximisation concept. The market price of a company’s shares is linked to the three basic financial decisions.