The Mix of Debt and Equity by Which a Corporation

question 226

Multiple Choice

The mix of debt and equity by which a corporation is financed refers to the firm's:

• A) Cash management.
• B) Capital structure.
• C) Capital budgeting.
• D) Working capital management.
• E) Leverage management.

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Definitions:

Charter

A legal document establishing a corporation or other organization, outlining its structure, purpose, and regulations.

Capital Needs

The financial requirements a company has for carrying out its operations and investments, including the purchasing of assets and funding of projects.

Par Value

The nominal or face value of a bond, share of stock, or coupon as stated by the issuer.

Paid-In Capital

The amount of money that a company has received from shareholders in exchange for shares of stock.