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

---

Definitions:

Positively Skewed

Describes a distribution of numerical data where the right tail is longer or fatter than the left, indicating that the majority of values are concentrated on the left side of the distribution.

Negatively Skewed

Describes a distribution where the tail is on the left side of the distribution, indicating that the majority of data points are concentrated on the right side.

Symmetric

Symmetric describes an attribute where a shape or distribution can be divided into mirrored halves, or in statistics, where the left and right sides of a distribution are approximately equal in shape.

Skewed Negatively

Skewed negatively, also known as left-skewed, refers to a distribution in statistics where the tail is longer on the left side of the distribution's peak, indicating that a majority of the data points are located to the right of the mean.