A company is said to have a complex capital structure if:
A) the company has preferred stock outstanding at the end of the period.
B) the company has potential common shares outstanding at the end of the period.
C) the company's capital structure includes more debt than shareholders' equity.
D) the company's capital structure includes more shareholders' equity than debt.

Question

Quizplus · Accepted Answer

A complex capital structure includes potential common shares, such as convertible securities, options, or warrants, which could dilute earnings per share if exercised or converted into common stock.

A Company Is Said to Have a Complex Capital Structure