Which of the following is the definition of Capital Structure"? *O the amount of capital in the firm.the mix of debt and equity used to finance the firm's assets.O the amount of dividends a firm pays.O the way a firm invests its assets.O how much cash the firm holds.

Capital structure is the ratio of capital components in which a company finances its activities.

Answered: Which of the following is the…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter13: Capital Structure Concepts

Section: Chapter Questions

Problem 3QTD

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Similar questions

What is the impact on stockholders equity when a company uses equity financing as a source of funding?
Owners equity represents which of the following? A. the amount of funding the company has from issuing bonds B. the sum of the retained earnings and accounts receivable account balances C. the total of retained earnings plus paid-in capital D. the business owners/owners share of the company, also known as net worth or net assets
The firm's capital structure refers to: Select one: a. the amount of dividends a firm pays b. None of the option c. how much cash the firm holds d. the amount of capital in the firm e. the way a firm invests its assets.
Capital structure refers to how the firm finances its operations and growth through a combination of . A. equity types B. security types C. types of earnings D. types of debt
What capital components are typically included when estimating a firm’s corporate cost of capital? Is the corporate cost of capital the same for all firms?
What is a firm’s cost of capital? Include discussions about debt, preferred stock, common stock and retained earnings. Keep in mind that the cost of capital is rate of return required by investors for a firm’s securities. When would you use debt, preferred stock, common stock or retained earnings?
Show the relationship between the cost of capital and the intrinsic value of a firm. How does cost of capital affect a firm’s decision on the distribution of dividends?
Question Capital structure refers to how the firm finances its operations and growth through a combination of . A. equity types B. security types C. types of earnings D. types of debt
a) Did the cash flow from operations cover the dividend payment made by the firm (if any)?b) If the firm has generated excess cash from operations, how did the firm invest the excess cash? If not, what were the sources of cash the firm used to pay for the capital expenditures and/or dividends? c) What other major items affected cash flows for the firm?d) What was the trend in capital expenditures for the firm?
d) Did the cash flow from operations cover the dividend payment made by the firm (if any)?e) If the firm has generated excess cash from operations, how did the firm invest the excess cash? If not, what were the sources of cash the firm used to pay for the capital expenditures and/or dividends? h) What other major items affected cash flows for the firm?f) What was the trend in capital expenditures for the firm?
1. Capital structure is the: a. mix of current and long-term assets, such as cash and fixed assets (plants and equipment). b. term a firm has on its equity, such as dividend payment schedules, stock repurchase agreements, etc. c. mix of equity, such as common stock, preferred stock, paid-in capital, and retained earnings. d. mix of debt and equity the firm uses to finance operations and asset purchases. 2. In computing the cost of capital, the cost of debt capital is determined by a. interest rate times (1 – the firm’s tax rate) b. annual interest payment divided by the proceeds from debt issuance. c. annual interest payment divided by the book value of the debt. d. the capital asset pricing model. 3. If a bond's value rises above its par value during its life, interest rates have: a. gone up. b. Gone down. c. there is no correlation with interest rates d. stayed the same

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Which of the following is the definition of Capital Structure"? * O the amount of capital in the firm. the mix of debt and equity used to finance the firm's assets. O the amount of dividends a firm pays. O the way a firm invests its assets. O how much cash the firm holds.