The optimum capital structure of a company is planned as per considerations of (I) Profitability (II) Solvency (III) Marketability of shares (IV) Control

I, II and IV only
II, III and IV only
I and II only
III and IV only

The correct answer is: C. I and II only.

The optimum capital structure of a company is planned as per considerations of profitability and solvency. Profitability is the ability of a company to generate profits from its operations. Solvency is the ability of a company to meet its financial obligations. Marketability of shares and control are not considered in planning the optimum capital

structure of a company.

Profitability is important because it determines the amount of money that a company has available to reinvest in its business or to distribute to shareholders as dividends. Solvency is important because it determines whether a company will be able to meet its financial obligations, such as interest payments on debt and repayment of principal. Marketability of shares is not considered in planning the optimum capital structure of a company because it is not directly related to the company’s ability to generate profits or meet its financial obligations. Control is not considered in planning the optimum capital structure of a company because it is not directly related to the company’s ability to generate profits or meet its financial obligations.

In addition to profitability and solvency, other factors that may be considered in planning the optimum capital structure of a company include the company’s risk tolerance, its growth prospects, and the cost of capital.

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