Consider the below mentioned statements and state the correct code of the statements being true or false.
Statement (I): A debt-equity ratio of 2 : 1 indicates that for every 1 unit of equity, the company has raised 2 units of debt.
Statement (II): The cost of floating an equity issue is lesser than the cost of floating a debt
Code:
1
Both the Statements (I) and (II) are false.
2
Both the Statements (I) and (II) are true.
3
Statement (I) is false and Statement (II) is true.
4
Statement (I) is true and Statement (II) is false.