A firm's capital structure is the mix of the current liabilities, long-term debt, and equity maintained by the firm.

Question

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A firm's capital structure refers to the mix of its long-term debt, equity (including common equity and preferred equity), and short-term debt (not typically including current liabilities such as accounts payable and accruals) that it uses for its financing. Current liabilities are considered part of the firm's working capital management rather than its capital structure.

A Firm's Capital Structure Is the Mix of the Current