Which one of the following terms is defined as the mixture of a firm's debt and equity financing? Multiple Choice Working capital management Cash management Cost analysis Capital budgeting Capital structure

Question

Business

Autumn

13 April, 05:35

Which one of the following terms is defined as the mixture of a firm's debt and equity financing? Multiple Choice Working capital management Cash management Cost analysis Capital budgeting Capital structure

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Kadyn Lin · Answer 1

Capital structure

Explanation:

The capital structure of a company defines the way the equity and debt component of the total capital is proportionalized. Capital structure refers to a company's outstanding debt and equity. It allows a firm to understand what kind of funding the company uses to finance its overall activities and growth. In other words, it shows the proportions of senior debt, subordinated debt and equity (common or preferred) in the funding.