The best definition of capital structure is:
A) The possibility of conflicts between shareholders and management in a large corporation.
B) The process of planning and managing a firm's long-term investments.
C) A venue where long-term debt and equity securities are bought and sold.
D) How a firm is financed through different proportions of debt and equity.
E) A venue where buyers and sellers of capital equipment come together to trade such assets.

Question

Quizplus · Accepted Answer

Capital structure refers to the mix of debt and equity that a company uses to finance its operations and growth. This includes long-term debt, common equity, and preferred equity.

The Best Definition of Capital Structure Is