Question

A capital structure decision concerns Select one: a. how much capital is needed to invest in...

A capital structure decision concerns

Select one:

a. how much capital is needed to invest in positive net present value projects.

b. the mix of debt and equity used to finance a firm's operations.

c. the evaluation of projects based on their estimated cash flows and net present values.

d. the ranking of capital in terms of riskiness and the choice based on this ranking.

e. the organizational structure that will allow a firm to obtain the best cost of capital.

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Capital budgeting decision concerns about how much capital is needed to invest in positive net present value projects , the evaluation of projects based on their estimated cash flows and net present values, and the ranking of capital in terms of riskiness and the choice based on this ranking.

Whereas,

capital structure decision concerns about:

the mix of debt and equity used to finance a firm's operations but not the organization structure.

Correct answer is

b. the mix of debt and equity used to finance a firm's operations.

Please rate the answer.

Add a comment
Know the answer?
Add Answer to:
A capital structure decision concerns Select one: a. how much capital is needed to invest in...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Can I please have answers to the following questions: sted cash Hlows and net present values....

    Can I please have answers to the following questions: sted cash Hlows and net present values. d. the ranking of capital in terms of riskiness and the choice based on this ranking. Oe. the organizational structure that will llow a firm to obtain the best cost of capital A firm has the following information for the last two years. Calculate its degree of financial leverage Sales Operating costs Net income Number of shares outstanding This year $1,500,000 $900,000 $150,000 50,000...

  • The decision process Before making capital budgeting decisions, finance professionals often generate, review, analyze, select, and...

    The decision process Before making capital budgeting decisions, finance professionals often generate, review, analyze, select, and implement long-term investment proposals that meet firm-specific criteria and are consistent with the firm's strategic goals. Companies often use several methods to evaluate the project's cash flows and each of them has its benefits and disadvantages. Based on your understanding of the capital budgeting evaluation methods, which of the following conclusions about capital budgeting are valid? Check all that apply. For most firms, the...

  • The decision process Before making capital budgeting decisions, finance professionals often generate, review, analyze, select, and...

    The decision process Before making capital budgeting decisions, finance professionals often generate, review, analyze, select, and implement long-term investment proposals that meet firm-specific criteria and are consistent with the firm's strategic goals. Companies often use several methods to evaluate the project's cash flows and each of them has its benefits and disadvantages. Based on your understanding of the capital budgeting evaluation methods, which of the following conclusions about capital budgeting are valid? Check all that apply. For most firms, the...

  • The decision process Before making capital budgeting decisions, finance professionals often generate, review, analyze, select, and...

    The decision process Before making capital budgeting decisions, finance professionals often generate, review, analyze, select, and implement long-term investment proposals that meet firm-specific criteria and are consistent with the firm's strategic goals. Companies often use several methods to evaluate the project's cash flows and each of them has its benefits and disadvantages. Based on your understanding of the capital budgeting evaluation methods, which of the following conclusions about capital budgeting are valid? Check all that apply. For most firms, the...

  • 8. Conclusions about capital budgeting The decision process Before making capital budgeting decisions, finance professionals often...

    8. Conclusions about capital budgeting The decision process Before making capital budgeting decisions, finance professionals often generate, review, analyze, select, and implement long-term investment proposals that meet firm-specific criteria and are consistent with the firm's strategic goals. Companies often use several methods to evaluate the project's cash flows and each of them has its benefits and disadvantages. Based on your understanding of the capital budgeting evaluation methods, which of the following conclusions about capital budgeting are valid? Check all that...

  • 7. Conclusions about capital budgeting The decision process Before making capital budgeting decisions, finance professionals often...

    7. Conclusions about capital budgeting The decision process Before making capital budgeting decisions, finance professionals often generate, review, analyze, select, and implement long-term investment proposals that meet firm-specific criteria and are consistent with the firm's strategic goals. Companies often use several methods to evaluate the project's cash flows and each of them has its benefits and disadvantages. Based on your understanding of the capital budgeting evaluation methods, which of the following conclusions about capital budgeting are valid? Check all that...

  • 7. Conclusions about capital budgeting The decision process Before making capital budgeting decisions, finance professionals often...

    7. Conclusions about capital budgeting The decision process Before making capital budgeting decisions, finance professionals often generate, review, analyze, select, and implement long-term investment proposals that meet firm-specific criteria and are consistent with the firm's strategic goals. Companies often use several methods to evaluate the project's cash flows and each of them has its benefits and disadvantages. Based on your understanding of the capital budgeting evaluation methods, which of the following conclusions about capital budgeting are valid? Check all that...

  • Select the correct term for each of the following descriptions. These are not necessarily complete definitions,...

    Select the correct term for each of the following descriptions. These are not necessarily complete definitions, but there is only one possible answer for each term. Descriptions Terms The level and nature of risk attributable to a firm's activities and operations, and ignoring the risks associated with the firm's capital structure. The situation in which outsiders, such as external shareholders, credits, suppliers, and customers have less and inferior information about a firm's past, current, and future conditions and prospects, compared...

  • The profitability index (PI) is a capital budgeting tool that is defined as the present value...

    The profitability index (PI) is a capital budgeting tool that is defined as the present value of a project's cash inflows divided by the absolute value of its initial cash outflow. Consider this case: Happy Dog Soap Company is considering investing $2,500,000 in a project that is expected to generate the following net cash flows: Happy Dog Soap Company uses a WACC of 9% when evaluating proposed capital budgeting projects. Based on these cash flows, determine this project's PI (rounded...

  • de buugeung 0 x Back to Assignment Attempts: Average: /2 8. Conclusions about capital budgeting The decision proces...

    de buugeung 0 x Back to Assignment Attempts: Average: /2 8. Conclusions about capital budgeting The decision process Before making capital budgeting decisions, finance professionals often generate, review, analyze, select, and implement long-term investment proposals that meet firm-specific criteria and are consistent with the firm's strategic goals. Companies often use several methods to evaluate the project's cash flows and each of them has its benefits and disadvantages. Based on your understanding of the capital budgeting evaluation methods, which of the...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT