Determining the best way to raise money to fund a firm's long-term investments is called
A) the capital budgeting decision.
B) the portfolio decision.
C) the money flow processing decision.
D) the capital structure decision.

Question

Quizplus · Accepted Answer

The capital structure decision involves determining the most appropriate mix of debt and equity financing to fund a firm's long-term investments. This decision has a significant impact on the firm's cost of capital and ultimately affects its ability to raise funds for future investments.

Determining the Best Way to Raise Money to Fund a Firm's