The question below comprises four scattered segments of a paragraph. Identify…
2024
The question below comprises four scattered segments of a paragraph. Identify from among the four choices the sequences that correctly assemble the segments and complete the paragraph.
A. While the above is true for private sector companies, it is not so in the public limited companies.
B. But with the removal of control over premia, the premia at which issues are marked has gone up quite sharply.
C. So the cost of capital at even a lower debt equity ratio comes out lower.
D. Traditionally, the cost of equity is higher than the cost of debt.
- A.
DBCA
- B.
BADC
- C.
ACDB
- D.
CDAB
Attempted by 2 students.
Show answer & explanation
Correct answer: A
Concept: In a scattered-paragraph (para-jumble) question, the opening sentence must stand on its own: it cannot begin with a word or phrase — such as a contrast connector ('But'), a result connector ('So'), or a backward-referring phrase ('the above', 'this') — that presupposes an idea from an earlier sentence. Every following sentence must then connect to the one before it through an explicit connector or a clear cause-and-effect link.
Application: Apply this rule to the four segments:
D - 'Traditionally, the cost of equity is higher than the cost of debt.' - is a stand-alone factual statement with no backward reference, so it can open the paragraph. A, B, and C each open with 'While', 'But', and 'So' respectively, so none of them can be first.
B - 'But with the removal of control over premia, the premia at which issues are marked has gone up quite sharply.' - follows the opening sentence directly: 'But' contrasts the new premium-pricing freedom against the traditional cost gap just stated.
C - 'So the cost of capital at even a lower debt equity ratio comes out lower.' - follows next: 'So' introduces the direct consequence of the sharp rise in premia just described.
A - 'While the above is true for private sector companies, it is not so in the public limited companies.' - closes the paragraph: 'the above' refers back to the entire cost-of-capital point just made, and the sentence adds a qualifying contrast between private and public companies.
Cross-check: Only one arrangement begins with the stand-alone factual sentence; the other three arrangements are eliminated immediately because each begins with a sentence that cannot open a paragraph on its own.
An arrangement opening with 'But' begins with a contrast word that has nothing yet to contrast against.
An arrangement opening with 'While the above is true...' begins with a phrase whose 'the above' has no earlier sentence to point to at the very start.
An arrangement opening with 'So' begins with a conclusion word that has no preceding statement to conclude from.
The order that satisfies every link is D-B-C-A.