Which Component of a Firm's Capital Structure Is the Most

question 59

Multiple Choice

Which component of a firm's capital structure is the most difficult to estimate?

• A) Preferred stock
• B) Equity
• C) Bank loans
• D) Bond-financed debt
• E) Private placements of debt

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Definitions:

Citizens United

A U.S. constitutional law case that held that the First Amendment prohibits the government from restricting independent expenditures for political communications by corporations, including nonprofit corporations, labor unions, and other associations.

Political Spending

Financial expenditures made by individuals, organizations, or companies to influence political processes and election outcomes.

First Amendment

A provision in the United States Constitution that prohibits the government from making laws which regulate an establishment of religion, or that would prohibit the free exercise of religion, or abridge the freedom of speech, the freedom of the press, the right to peaceably assemble, or the right to petition the government for a redress of grievances.

Federal Statute

A law enacted by the national government that applies to all states and people within the United States.