If a firm had the following mix of capital components: 
its capital structure would be described as:
A) 25% debt and 75% equity
B) 25% debt, 20% preferred stock, and 55% equity
C) 45% debt and 55% equity
D) both a and b
Correct Answer:
Verified
Q2: Capital refers to funds acquired for use
Q3: If a firm is losing money, the
Q4: The book value of a firm's capital
Q5: A project's cost of capital is 10%.
Q6: Although preferred stock is legally a form
Q8: Debt capital:
A)costs the least because it's the
Q9: To be accepted, projects that are unusually
Q10: A firm's cost of capital is the
Q11: Generally, the return on an equity investment
Q12: Separately funded projects:
A)should be evaluated against the
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