If a Firm Had the Following Mix of Capital Components $\begin{array}{ll}\text { Debt } & \$ 25,000 \\\text { Preferred stock } & \$ 20,000 \\\text { Common stock } & \$ 55,000\end{array}$

question 178

Multiple Choice

If a firm had the following mix of capital components: $\begin{array}{ll}\text { Debt } & \$ 25,000 \\\text { Preferred stock } & \$ 20,000 \\\text { Common stock } & \$ 55,000\end{array}$ its capital structure would be described as:

• A) 25% debt and 75% equity
• B) 25% debt, 20% preferred stock, and 55% equity
• C) 45% debt and 55% equity
• D) both a and b

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Definitions:

Local Population

pertains to the number of inhabitants residing within a specific area or region, often used in studies and planning at a community or municipal level.

Free-Market Economy

An economic system where prices for goods and services are determined by the open market and by consumers, with minimal government intervention or centralized planning.

Banking Presence

The extent and availability of banking services and institutions within a particular area or region.

Credit Provided

The provision of funds or resources now with an agreement or expectation of repayment in the future, often with interest.