How does the text distinguish between firm's financial structure and its capital structure?
A) Financial structure includes only interest bearing debt
B) Capital structure includes only non-interest bearing debt
C) Financial structure uses market values of equity
D) Capital structure includes only interest bearing debt

Question

Quizplus · Accepted Answer

Capital structure refers to the mix of interest-bearing debt and equity that a firm uses to finance its operations, while financial structure includes all liabilities and equity, both interest and non-interest bearing.

How Does the Text Distinguish Between Firm's Financial Structure and Its