The proportions of the market value of the ﬁrm's assets ﬁnanced via debt, common stock, and preferred stock are called the ﬁrm's _____________________.

Question

Quizplus · Accepted Answer

The proportions of the market value of a firm's assets financed via debt, common stock, and preferred stock are called the firm's capital structure weights. So, option D is the correct answer. Option A (Financing costs) refers to the costs incurred in obtaining financing, option B (Portfolio weights) refers to the weights of individual securities in a portfolio, option C (Beta coefficients) measures the systematic risk of the securities, and option E (Costs of capital) refers to the cost of the different sources of financing.

The Proportions of the Market Value of the ﬁRm's Assets