Capital structure refers to the
A)determination of the ideal mix of current versus long-term assets.
B)methods by which fixed assets are used to produce a tangible product.
C)mix of current assets and current liabilities.
D)acquisition or disposition of a building or other long-term asset.
E)decisions related to long-term debt and equity financing.

Question

Quizplus · Accepted Answer

Capital structure refers to the long-term debt and equity financing decisions made by a company. It involves determining the ideal mix of debt and equity that will result in the lowest cost of capital and maximize shareholder value. This is different from the other options, which focus on either short-term assets/liabilities or fixed assets, rather than long-term financing decisions.

Capital Structure Refers to the