____ decisions are decisions about how much and what types of debt and equity should be used to finance the firm.
A) Capital structure
B) Capital budgeting
C) Dividend policy
D) Risk tolerance

Question

Quizplus · Accepted Answer

Capital structure decisions refer to deciding on the mix of debt and equity that a company uses to finance its operations and fund its growth. This decision is crucial as it affects the company's overall financial health and its ability to raise funds in the future. Capital budgeting decisions involve determining which investments the company should undertake to generate future cash flows, while dividend policy decisions refer to how much of the company's earnings should be distributed as dividends to shareholders. Risk tolerance refers to a company's willingness to tolerate and manage risk in its operations and investments.

____ Decisions Are Decisions About How Much and What Types