UGC NET Capital structure theories Previous Year Questions
JRFSmart holds 25 previous-year questions on Capital structure theories from UGC NET Commerce (Paper 2), filed under Unit 4: Business Finance, drawn from 18 of the 22 exam papers in the bank (2018–2025). Each question can be practised with a full explanation and shows how often NTA has returned to the same idea.
What is asked in Capital structure theories
The questions in this topic fall under these subtopics, ordered by how many previous-year questions each has.
| Subtopic | Questions |
|---|---|
| Net Income approach | 2 |
| Approaches to capital structure | 1 |
| Cost of increasing debt | 1 |
| Capital structure of a new business | 1 |
| Finance theories and topics | 1 |
| Net Operating Income approach | 1 |
| Target and optimum capital structure | 1 |
| Pecking order theory | 1 |
| MM approach with taxes | 1 |
| Cash flow approach to debt capacity | 1 |
| MM approach - assumptions | 1 |
| Leverage and earning power | 1 |
NTA repeat analysis
Capital structure theories appears in 18 of 22 papers (82%), which JRFSmart rates as high frequency.
Sample previous-year questions
Which one of the following refers to the composition of long term funds such as debentures, long term borrowing, preference shares, equity shares in the capitalization of a company?
A company has 10%, 20 lakh debentures. The EBIT of the company is Rs.5,00,000 and the equity capitalisation rate is 16%. Calculate overall cost of capital.
A large real estate company in India is facing challenges in raising funds for expansion. Despite solid track record the company is struggling to attract investors due to increasing concern about liquidity in the financial market. The company has earlier…
Which of the following assumption is of Net Income Approach of capital structure? A. Cost of debt is less than cost of equity. B. There is no tax. C. Risk perception of invester will not change by the use of debt. D. Change in capital structure of a company…
Which one of the following has given the Net Income approach of capital structure?
Which one of the following theory of capital structure discusses Arbitrage Process?
According to the traditional approach, what is the effect of increase in degree of leverage on the valuation of a firm?
Match List I with List II. LIST I | LIST II A. MM approach | I. Costs of financial distress B. Pecking order theory | II. Assymetric information C. Trade off theory | III. No target capital structure D. Signaling theory | IV. Home made Leverage Choose the…
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