Capital Structure Is

question 82

Multiple Choice

Capital structure is:

• A) the relative mix of capital and intangible assets held by the firm.
• B) the relative importance of debt and equity in the firm's financing.
• C) the relative importance of long-term investment decisions.
• D) the terms required to borrow money.

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Definitions:

45-degree Line

A line graphed in economics and finance representing places where two variables measured on the axes are equal in value.

Gini Coefficient

A scale assessing the distribution of income among a population, where 0 denotes total equality and 1 indicates complete disparity.

Income

Periodic financial returns from work engagements or investments.

Lorenz Curve

A graphical representation of the distribution of income or wealth within a society, indicating levels of inequality.