Which one of the following is a capital structure decision?
A)determining the optimal inventory level
B)establishing the preferred debt-equity level
C)selecting new equipment to purchase
D)setting the terms of sale for credit sales
E)determining when suppliers should be paid

Question

Quizplus · Accepted Answer

Establishing the preferred debt-equity level is a capital structure decision as it involves determining the proportion of debt and equity financing in a company's funding mix. The other options are related to working capital management or investment decisions and do not involve the company's capital structure.

Which One of the Following Is a Capital Structure Decision