Which of the Following Is Not an Influence Affecting a Firm's

question 72

Multiple Choice

Which of the following is not an influence affecting a firm's capital structure choices?

• A) corporate control
• B) maturity matching
• C) timing
• D) distribution channels

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Definitions:

Overhaul Costs

Expenditures related to major repairs or restoration of equipment or machinery to extend its useful life.

Discount Rate

In finance, a rate used to determine the present value of future cash flows or investments, reflecting the time value of money and risk.

Salvage Value

An asset's projected market price at the termination of its serviceable life.

Simple Rate Of Return

The rate of return computed by dividing a project’s annual incremental accounting net operating income by the initial investment required.