The relative proportion of debt,equity,and other securities that a firm has outstanding constitute its:
A)asset ratio.
B)current ratio.
C)capital structure.
D)value structure.
E)enterprise value.

Question

Quizplus · Accepted Answer

Capital structure refers to the relative mix of debt and equity that a company uses to finance its operations. This can include other securities such as preferred stock or convertible bonds. The capital structure is an important aspect of a company's financial profile as it can impact its cost of capital and financial risk.

The Relative Proportion of Debt,equity,and Other Securities That a Firm