The capital structure of the firm can be defined as
I.the firm's mix of different debt securities;
II.the firm's mix of different securities used to finance assets;
III.the market imperfection that the firm's managers can exploit
A)I only
B)II only
C)III only
D)I, II, and III

Question

Quizplus · Accepted Answer

The capital structure of the firm is defined as the mix of different securities used to finance assets (II). The other options are not part of the definition of capital structure.

The Capital Structure of the Firm Can Be Defined as