Capital structure decisions include determining:
A) which one of two projects to accept.
B) how to allocate investment funds to multiple projects.
C) the amount of funds needed to finance customer purchases of a new product.
D) how much debt should be assumed to fund a project.
E) how much inventory will be needed to support a project.

Question

Quizplus · Accepted Answer

Capital structure decisions involve determining the appropriate mix of debt and equity financing to fund a project. Therefore, the decision on how much debt should be assumed to finance a project is a part of capital structure decision-making. Choices A, B, C, and E are not directly related to capital structure decisions.

Capital Structure Decisions Include Determining