2.

Face value of debentures is more than face value of shares

3. Equity shares are easily saleable

4. All of these

Explanation:-
Debt capital - Debt capital refers to funds that are borrowed and must be repaid at a
later date. While debt allows a company to leverage a small amount of money into a
much greater sum, lenders typically require the payment of interest in return for the
privilege. This interest rate is the cost of debt capital. If a company takes out a
$100,000 loan with a 7% interest rate, the cost of capital for the loan is 7%.
However, because payments on debts are often tax-deductible, businesses account
for the corporate tax rate when calculating the real cost of debt capital by multiplying
the interest rate by the inverse of the corporate tax rate. Assuming the corporate tax
rate is 30%, the loan in the above example then has a cost of capital of 0.07 * (1 -
0.3) or 4.9%.

Equity Capital - Because equity capital typically comes from funds invested by
shareholders, the cost of equity capital is slightly more complex. While equity funds
need not be repaid, there is a level of return on investment that shareholders can
reasonably expect based on the performance of the market in general and the
volatility of the stock in question. Companies must be able to produce returns – in
the form of healthy stock valuations and dividends – that meet or exceed this level to
retain shareholder investment. The capital asset pricing model (CAPM) utilizes the
risk-free rate, the risk premium of the wider market, and the beta value of the
company's stock to determine the expected rate of return or cost of equity.

 Q7) Which ratio referes to Ratio of Net Income to Number of Equity Shares
1. Price Earnings Ratio

2. Net Profit Ratio

3. Earnings per Share

4. Dividend per Share.

 Q8) What refers to cebt service capacity of a company

1. Current Ratio

2. Acid Test Ratio

3. Interest Coverage Ratio

4. Debtors Turnover.