Which one of the following is a capital structure decision?

A. Determining the optimal inventory level

B. Establishing the preferred debt-equity level

C. Selecting new equipment to purchase

D. Setting the terms of sale for credit sales

E. Determining when suppliers should be paid

Question

3 July, 09:37

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Answers (1)

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Arely Andrews · Answer 1

B

Explanation:

Capital Structure decision is determining the optimal way of raising capital either through Equity or Debt.

Which one of the following is a capital structure decision?A. Determining the optimal inventory levelB. Establishing the preferred debt-equity levelC. Selecting new equipment to purchaseD. Setting the terms of sale for credit salesE. Determining when suppliers should be paid