The Relative Proportion of Debt,equity,and Other Securities That a Firm

question 74

Multiple Choice

The relative proportion of debt,equity,and other securities that a firm has outstanding constitute its:

• A)asset ratio.
• B)current ratio.
• C)capital structure.
• D)value structure.
• E)enterprise value.

---

Definitions:

Adjustable Rate Mortgages

A type of mortgage loan where the interest rate can change over time based on a benchmark interest rate or index that reflects the cost to the lender.

TARP Bailout

A program initiated by the U.S. government during the 2008 financial crisis to purchase toxic assets and inject capital into banks to stabilize the financial system.

Illiquid Assets

Assets that cannot be easily sold or converted into cash without a significant loss in value.

Financial Institutions

Organizations that provide financial services, such as banks, insurance companies, and investment funds, playing a critical role in the economy.