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Assertion (A):The capital structure should be determined within the debt capacity of the company and this capacity should not be exceeded.Reason (R):The debt capacity of a company depends on its ability to generate future cash flows. It should have enough cash to pay creditors’ fixed charges and principal sum.Select the correct answer from the options given below

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Assertion (A):<br />The capital structure should be determined within the debt capacity of the company and this capacity should not be exceeded.<br />Reason (R):<br />The debt capacity of a company depends on its ability to generate future cash flows. It should have enough cash to pay creditors’ fixed charges and principal sum.<br />Select the correct answer from the options given below






 
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