Capital structure decisions include which of the following?
Capital structure decisions include which of the following?
1. Deciding when to repay long-term debt.
II. Deciding how funds are distributed to the various divisions of the company.
III. Evaluating the costs of issuing debt and equity.
IV. Determining the appropriate level of net working capital.
Select one:
a. II only.
b. I and III.
C. II and IV.
d. I, II, and III.
e. I only.
Homework Answers
Answer is b. I and III only.
Determining the mix of debt and equity to be used tofinance a firm is known as capital structuring. Deciding when to pay a long term debt is a capital structure decision since it will decide the proportion of equity and debt. Similarly III is a capital structure decision.
Capital structure decisions include determining:
Capital structure decisions include determining: Multiple Choice the amount of funds needed to finance customer purchases of a new product which one of two projects to accept how much debt should be assumed to fund a project a project how much inventory will be needed to support a project. how to allocate investment funds to multiple projects
Capital structure decisions include determining: 1. which one of two projects to accept. 2. how to...
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The financial manager has three major tasks. These involve making decisions about capital budgeting, capital structure...
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Testbank Question 103 Relevant cash flows for long-term decisions include: I. Revenues for new projects or...
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Relevant cash flows for long-term decisions include:
I. Revenues for new projects or services
II. Variable costs for new projects or services
III. Labour or electricity savings for replacement of old
equipment
II and III only
I and III only
I and II only
I, II, and III
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Testbank Question 103
Relevant cash flows for long-term decisions include:
I. Revenues for new projects or services
II. Variable costs for new projects or services
III. Labour or electricity savings for replacement of old
equipment
II and III only
I and III only
I and II only
I, II, and III
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