The decision to issue debt rather than additional shares of stock is an example of:
A) Working capital management.
B) A net working capital decision.
C) Capital budgeting.
D) A controller's duties.
E) Capital structure decision.

Question

Quizplus · Accepted Answer

Issuing debt rather than additional shares of stock is related to a company's capital structure decision. This involves determining the best mix of debt and equity financing to optimize the company's value.

The Decision to Issue Debt Rather Than Additional Shares of Stock