When a Firm Alters Its Capital Structure to Include More

question 98

Multiple Choice

When a firm alters its capital structure to include more or less debt (and, in turn, less or more equity) , it impacts which of the following?

• A)The residual cash flows available for stock holders
• B)The number of shares of stock outstanding
• C)The earnings per share (EPS)
• D)All of the choices

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Definitions:

Exports

Goods or services produced in one country and sold to buyers in another country.

Imports

Imports refer to the goods and services that are brought into a country from abroad for sale.

Balance Of Trade Surplus

Occurs when a country's exports exceed its imports during a given time period, indicating a positive balance of trade.

Swiss Francs

The currency of Switzerland, used as a medium of exchange within the country.