A ﬁrm's capital structure is deﬁned:
A) As the combination of debt and equity used to ﬁnance the ﬁrm's operations.
B) By the types of ﬁxed assets the ﬁrm owns.
C) As the mix of short-term and Long-term assets owned by the ﬁrm.
D) As the amount of ﬁxed assets needed to support every $1 in sales.
E) By the nature of the product or service provided.

Question

Quizplus · Accepted Answer

Capital structure refers to the mix of debt and equity a company uses to finance its operations.

A ﬁRm's Capital Structure Is Deﬁned