The decision to issue additional shares of stock is an example of:
A) working capital management.
B) a net working capital decision.
C) capital budgeting.
D) a controller's duties.
E) a capital structure decision.

Question

Quizplus · Accepted Answer

The decision to issue additional shares of stock is related to a company's capital structure. It involves determining the appropriate mix of debt and equity to fund its operations and growth. By issuing more shares, a company is increasing its equity, which can affect its overall cost of capital and financial risk.

The Decision to Issue Additional Shares of Stock Is an Example