If a company is focusing on a portfolio of high growth, high risk investments what is likely to be its capital structure?
A) High debt, low equity
B) Debt only
C) High equity, low debt
D) Venture capital

Question

Quizplus · Accepted Answer

A company focusing on high growth, high risk investments is likely to have a capital structure with high equity and low debt to accommodate the risk and potential for high returns without the burden of fixed debt obligations.

If a Company Is Focusing on a Portfolio of High