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Question

What does the term "capital structure" refer to in the context of corporate finance?

A Long-term debt, preferred stock, and equity shares Correct Answer Incorrect Answer
B Current assets and current liabilities Correct Answer Incorrect Answer
C Net working capital Correct Answer Incorrect Answer
D Shareholder's equity Correct Answer Incorrect Answer
E None of the above Correct Answer Incorrect Answer

Solution

In the context of corporate finance, the term "capital structure" refers to the mix of different types of financing that a company uses to fund its operations and growth. This mix includes long-term debt, preferred stock, and equity shares.

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