Which of the following should be excluded from a firm's capital structure?
A) Common equity
B) Non-interest bearing debt
C) Long-term debt
D) Short-term bank notes

Question

Quizplus · Accepted Answer

Non-interest bearing debt is typically not considered part of a firm's capital structure because capital structure focuses on the mix of different types of financing used by a firm to fund its operations and growth, specifically highlighting interest-bearing debt and equity. Non-interest bearing debt, such as trade credit, does not incur interest and is often short-term, thus not fitting the typical definition of capital structure components.

Which of the Following Should Be Excluded from a Firm's