A Firm's Capital Structure Refers to the

question 31

Multiple Choice

A firm's capital structure refers to the

• A)division of a firm's assets into current and fixed assets.
• B)amount shareholders have invested into the firm.
• C)types of fixed assets owned by the firm.
• D)mix of debt and equity used to finance the firm's assets.
• E)amount of cash and cash equivalents held by a firm.

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Definitions:

Venture Capital

Financing for new, often high-risk ventures.

Ownership

The act, state, or right of possessing something.

Financing Condition

A provision that stipulates specific financial conditions that must be met for a transaction to proceed.

Voting Preferred Stock

A type of preferred stock that grants holders the right to vote on certain corporate matters, typically in addition to receiving fixed dividend payments.