Capital structure determines how much risk is associated with the future cash flows of a project.

Name: Capital structure determines how much risk is associated with the future cash flows of a project.
Brand: Quizplus
Rating: 4.7 (23 reviews)

Question

Quizplus · Accepted Answer

Capital structure refers to the mix of debt and equity financing a company uses, which affects the company's overall risk and cost of capital, but it does not directly determine the risk associated with the future cash flows of a specific project.

Capital Structure Determines How Much Risk Is Associated with the Future