Advertisements
Advertisements
Question
When the stock market is bullish, a company must go for which of the following?
Options
More debt
More equity
Less equity
Equal mix of debt and equity
MCQ
Solution
More equity
Explanation -
When the stock markets are rising, equity shares are easier to sell, even at a greater price. In such a situation, firms frequently prefer to use equity.
shaalaa.com
Is there an error in this question or solution?