A Firm's Capital Structure Combines All Forms of Long-Term Financing

question 47

Multiple Choice

A firm's capital structure combines all forms of long-term financing on which the firm relies EXCEPT:

• A)long-term debt.
• B)common equity.
• C)inventory.
• D)preferred shares.

---

Definitions:

Effective Annual Rate

The real interest rate on an investment or loan, taking into account the effect of compounding interest as opposed to just the nominal or stated rate.

Compounded Monthly

Interest on a loan or investment calculated monthly on both the initial principal and the accumulated interest from previous periods.

Monthly Deposits

Regular monetary contributions made into a savings or investment account over a monthly interval.

Personalized Presidency

An approach to the presidency where the occupant relies on their personal image and direct relationship with the public, often through media, rather than through traditional party structures.