Firms Can Alter Their Capital Structure By

question 42

Multiple Choice

Firms can alter their capital structure by:

• A) not accepting any capital budgeting projects.
• B) investing in intangible assets.
• C) issuing stock to repay debt.
• D) becoming a limited liability company.

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Definitions:

Loanable Funds

The supply of money that savers have made available to borrowers.

Usury Laws

Regulations governing the maximum interest rate that can be charged on loans, intended to protect consumers from excessively high rates.

High Interest Rates

High interest rates refer to periods or situations where the cost of borrowing money is elevated, which can decrease consumer spending and business investment.

Usury Law

Regulations that cap the maximum interest rate that can be charged on loans, aimed at preventing exorbitant or unreasonable interest rates.