Which of the following is an example of a capital structure? Multiple Choice10 percent current liabilities and 90 percent long-term debt15 percent current assets and 85 percent fixed assets20 percent debt and 80 percent equity

Question

Aisha Key

Business

10 June, 16:45

Which of the following is an example of a capital structure? Multiple Choice10 percent current liabilities and 90 percent long-term debt15 percent current assets and 85 percent fixed assets20 percent debt and 80 percent equity

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Answers (1)

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Alexzander Lamb · Answer 1

20 percent debt and 80 percent equity

Explanation:

The capital structure is a combination of both debt and equity. The equity can be in common stock or preferred stock so that it could make the finance for the company

In mathematically,

Capital structure = Debt + equity

So in the given options, the last option is correct as it shows the 20% of debt and 80% of equity which represents the capital structure