Match List I with List II List I Capital StructurePreposition(s) List IIDescription(s)A. Target Capital structure I. Expected yield on the equity capital is equal to the pure equity return plus a premium for financial riskB. Optimum Capital Structure II. It refers to the perceived costs due to increased ratio of debt in the firm.C. Cost of financial distressIII. It is the debt ratio the firm strives to achieveD. MM preposition-IIIV. It is the debt-equity ratio that maximises the value of the firm.Choose the correct answer from the options given below:

• A. A - II, B - III, C - I, D - IV
• B. A - III, B - IV, C - II, D - I
• C. A - IV, B - II, C - III, D - I
• D. A - I, B - III, C - II, D - IV