Match List I with List II

List I

Capital Structure
Preposition(s)

List II

Description(s)

A.

Target Capital structure

I.

Expected yield on the equity
capital is equal to the pure
equity return plus a premium
for financial risk

B.

Optimum Capital Structure

II.

It refers to the perceived costs
due to increased ratio of debt in
the firm.

C.

Cost of financial distress

III.

It is the debt ratio the firm strives
to achieve

D.

MM preposition-II

IV.

It is the debt-equity ratio that
maximises the value of the firm.

Choose the correct answer from the options given below:

Question

	List I Capital Structure Preposition(s)		List II Description(s)
A.	Target Capital structure	I.	Expected yield on the equity capital is equal to the pure equity return plus a premium for financial risk
B.	Optimum Capital Structure	II.	It refers to the perceived costs due to increased ratio of debt in the firm.
C.	Cost of financial distress	III.	It is the debt ratio the firm strives to achieve
D.	MM preposition-II	IV.	It is the debt-equity ratio that maximises the value of the firm.