Question $1$:$-$ Capital structure decision should always aim at having debt component in order to$\_\_\_$

a$)$ Gain Tax sayings

b$)$ Balance the capital structure

c$)$ Gain control

d$)$ Increase EPS

Question $2$:$-$ The cost which equates PV cash inflow with the PV of cash outflow is

a$)$ Explicit cost

b$)$ Original cost

c$)$ Historical cost

d$)$ Specific cost

Question $3$:$-$ In case of Net Income Approach, when the debt proportion is increased, the cost of debt

a$)$ Increases

b$)$ Decreases

c$)$ Constant

d$)$ None of these

Question $4$:$-$ One of the following is not an assumption of capital structure theories

a$)$ These are capital structure sources of funds, i$.$e$.$ debt and equity.

b$)$ There are no corporate taxes

c$)$ Dividend Payout ratio varies between $0\%$ and $100\%$

d$)$ Firm's business risk is constant overtime