Capital structure decisions include which of the following?
A) Determining the number of shares of stock to issue.
B) Determining whether the firm should purchase or lease some equipment.
C) Allocating funds to the various divisions within the firm.
D) Evaluating the size of inventory to be kept on hand.
E) Evaluating the customer credit policy.

Question

Quizplus · Accepted Answer

Capital structure decisions involve determining the mix of debt and equity financing, which includes decisions on issuing shares of stock. Choices B, C, D, and E are operational decisions rather than capital structure decisions.

Capital Structure Decisions Include Which of the Following