The issue of corporate capital structure has similarities to college students' financial situations because:

Question

Quizplus · Accepted Answer

Both (a) and (c) are correct. Many students use loans to finance their education, which is a form of debt financing. Issuing stock and using the equity to finance investment in assets is another way for corporations to raise funds, which is similar to using debt to finance an education. Additionally, the decision of how to structure the corporate capital is similar to a college student's decision to choose the best form of financing for their education.

The Issue of Corporate Capital Structure Has Similarities to College