Which of the Following Is an Example of a Capital

question 71

Multiple Choice

Which of the following is an example of a capital structure?

• A) 15% current assets and 85% fixed assets
• B) 10% current liabilities and 90% long-term debt
• C) 20% debt and 80% equity
• D) None of these.

---

Definitions:

Underwriting Spread

The underwriting spread is the difference between the amount underwriters pay to the issuer in a securities offering and the price at which the securities are sold to the public, serving as compensation for the underwriters.

Issue Costs

Costs related to the creation of new securities, encompassing fees for underwriting, legal services, and registration.

Stock Price

Stock price is the amount of money required to purchase a share of a company's stock, fluctuating based on supply, demand, and market sentiment.

Subscription Price

The cost at which existing shareholders can purchase additional shares in a company, often at a discount during a rights issue.