The firm's ___________is the mix of long-term debt and equity utilized by the firm, which maysignificantly affect its value by affecting return and risk.
A) working capital
B) dividend policy
C) capital budget
D) capital structure

Question

Quizplus · Accepted Answer

Capital structure refers to the mix of long-term debt and equity that a company uses to finance its operations. This mix can have a significant impact on the company's value, as it affects both the return that investors can expect to receive and the riskiness of the investment. By choosing the right mix of debt and equity, a company can optimize its capital structure and maximize its value.

The Firm's ___________Is the Mix of Long-Term Debt and Equity