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    Question

     Which of the following refers to the mix of long-term

    debt and equity used by a firm to finance its overall operations and growth?
    A Working capital management Correct Answer Incorrect Answer
    B Capital budgeting Correct Answer Incorrect Answer
    C Capital structure Correct Answer Incorrect Answer
    D Financial leverage Correct Answer Incorrect Answer
    E Dividend policy Correct Answer Incorrect Answer

    Solution

    Solution Capital structure refers to the combination of long-term sources of funds used by a company, mainly: · Equity share capital · Preference share capital · Long-term debt (debentures, long-term loans) It shows how a firm finances its assets and operations in the long run.

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