An increase in total assets can be financed by an increase in which of the following capital components:
A) debt
B) preferred stock
C) common equity
D) All of the above

Question

Quizplus · Accepted Answer

An increase in total assets can be financed by any or all of the three capital components: debt, preferred stock, and common equity. It is up to the company's management to determine the optimal mix of these components to achieve the desired capital structure.

An Increase in Total Assets Can Be Financed by an Increase