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2.4 Financial markets and monetary policy (A-level only)

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Question 59

A green energy infrastructure firm has an issued share capital of £8.0 million and outstanding corporate bonds of £1.2 million. To finance the construction of a new offshore wind farm extension, the firm issues additional corporate bonds worth £2.8 million.

All other things being equal, after the issue of the additional corporate bonds, the ratio of the firm's total debt to its equity will be:

A

0.15:10.15:10.15:1

B

0.35:10.35:10.35:1

C

0.50:10.50:10.50:1

D

2.00:12.00:12.00:1

Markscheme

2.4 Financial markets and monetary policy (A-level only) Questions

  1. A Level
  2. /Economics
  3. /2.4 Financial markets and monetary policy (A-level only)

176 exam-style questions on AQA A Level Economics 2.4 Financial markets and monetary policy (A-level only), covering 2.4.1 The structure of financial markets and financial assets, 2.4.2 Commercial banks and investment banks, 2.4.3 Central banks and monetary policy, and 2.4.4 The regulation of the financial system. Each one has a worked solution and a mark scheme showing where the marks go.

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