If a Firm Changes Their Capital Structure by Immediately Selling

question 99

Multiple Choice

If a firm changes their capital structure by immediately selling additional claims of one type of capital and using the proceeds to retire another kind of claims,they are using which type of capital structure change?

• A)Active
• B)Passive
• C)Separation
• D)Supportive

---

Definitions:

Underwriters

Professionals who evaluate and assume the risk of another party's financial products, particularly in the fields of insurance and investing, by pricing and placing new securities in the market.

Stock Issue

The process by which a company distributes new shares to investors, either through public offering or private placement.

Legal Fees

Costs charged by lawyers for their services.

Subscription Price

The fee charged to customers for accessing a product or service for a specified period, typically recurring monthly or annually.