The term capital structure describes:
A) The mixture of debt and equity a firm uses to finance its operations.
B) The mixture of long-term investments a firm has made.
C) The mix of preferred stock and common stock that makes up the equity account of a firm.
D) The firm's short-term assets and short-term liabilities.
E) The mixture of short-term liabilities a firm uses to finance its short-term assets.

Question

Quizplus · Accepted Answer

The term capital structure refers to how a firm finances its overall operations and growth through different sources of funds, which typically include a mix of debt (loans, bonds) and equity (common stock, preferred stock).

The Term Capital Structure Describes