11-Which of the following is not true about the optimum capital structure ?

a.

None of these

b.

Minimizes Overall cost of capital and Maximizes Firm Value

c.

Maximizes Firm value and Overall cost of capital

d.

Minimizes Cost of capital and firm value

13-Calculate the cost of equity share capital from the following information by using appropriate method?

1. Earnings available to the shareholders - 80,000 OMR

2. no. of shares outstanding - 20,000

3. Market price of shares - 25 OMR

a.

20%

b.

13%

c.

16%

d.

4%