Capital structure decisions include determining:

1. which one of two projects to accept.

2. how to allocate investment funds to multiple projects.

3. the amount of funds needed to finance customer purchases of a new product.

4. how much debt should be assumed to fund a project.

5. how much inventory will be needed to support a project.

Question

Business

Reese Archer

8 July, 10:44

Capital structure decisions include determining:

1. which one of two projects to accept.

2. how to allocate investment funds to multiple projects.

3. the amount of funds needed to finance customer purchases of a new product.

4. how much debt should be assumed to fund a project.

5. how much inventory will be needed to support a project.

+5

Answers (1)

Know the Answer?

Dylan Garza · Answer 1

4. how much debt should be assumed to fund a project.

Explanation:

The capital structure is a mix of the debt and equity

In equation form, it is

Capital structure = Debt + equity

These two items should be taken for financing the assets of the company

And, the other options that are mentioned are related to the techniques of the capital budgeting

Therefore, the correct option is 4.