long-term liabilities vs. capital assets. The term "capital structure" refers to: a) long-term debt, preferred stock, and common stock equity. current liabilities vs. current asset. b. mixture of debt and equity that a firm uses to finance its assets. Infrastructure is the set of fundamental facilities and systems that support the sustainable functionality of households and firms. Structures represent financial leverage ratios, by which lenders and owners share business risks and rewards. a) Capitalisation . Total assets minus liabilities. Capital structure ratios tend to fall within a narrow range within industries. Capital structure decisions depend upon several factors. It allows a firm to understand what kind of funding the company uses to finance its overall activities and growth. The capital structure of a firm refers to the firm's: a. current assets and liabilities. and/or equity Equity Value Equity value can be defined as the total value of the company that is attributable to shareholders. Students (upto class 10+2) preparing for All Government Exams, CBSE Board Exam, ICSE Board Exam, State Board Exam, JEE (Mains+Advance) and NEET can ask questions from any subject and get quick answers by subject teachers/ experts/mentors/students. b) current assets and current liabilities. Capital structure refers to the _____. total assets minus liabilities. The term capital structure refers to the percentage of capital (money) at work in a business by type. In other words, it shows the proportions of senior debt, subordinated debt and equity (common or … Start studying Capital Structure: MM. c. available cash. A firm’s capital structure is typically expressed as a debt-to-equity or debt-to-capital ratio. Financial structure refers to the way as to how the firm’s assets are financed. A. Preferred Stock, Equity Stock, Reserves and Long- term Debts). Capital structure refers to the amount of debt Market Value of Debt The Market Value of Debt refers to the market price investors would be willing to buy a company's debt at, which differs from the book value on the balance sheet. Shareholders equity. c. mixture of assets that a firm has on its balance sheet. Debt is a cheaper source of financing, as compared to equity. Each type of capital has its benefits and drawbacks, and a substantial part of wise corporate stewardship and management is attempting to find the perfect capital structure regarding risk/reward payoff for … c) total assets minus liabilities. It allows a firm to understand what kind of funding the company uses to finance its overall activities and growth. current assets and current liabilities. A critical assumption of the net operating income (NOI) approach to valuation is: that debt and equity levels remain unchanged. Managers, therefore, use industry capital structure ratios as a guide for optimizing their own company's capital structures. The capital structure of a firm refers to the firm's: a. current assets and liabilities. shareholders' equity. However, a more frequently used term is capital structure which is […] 2. A liberal arts college, an independent institution of higher education focusing on undergraduate education, such as Williams College or Amherst College. total assets minus liabilities. The term "capital structure" refers to: A. the manner in which a firm obtains its long-term sources of funding. Capital Structure Capital structure refers to how a business is financing its operations. c. the mix of current assets and current liabilities. c) Under-capitalisation Capital structure is the mix of the long-term sources of funds used by a firm. Capital structure refers to the degree of long term financing of a business concern as in the form of debentures, preference share capital and equity share capital including reserves and surplus. A company's ideal capital structure will depend on its specific situation, including factors like the cost of capital, the business cycle, and any existing debt or equity. d. organizational chart. Capital Structure Decision: A firm’s capital structure or financing decision is concerned with obtain­ing funds to meet firm’s long term investment requirements. a) Capitalisation b) Over-capitalisation c) Under-capitalisation d) Market capitalization 8. … It is composed of long-term debt, prefer­ence share capital and shareholders’ funds. c. the mix of current assets and current liabilities. b) current assets and current liabilities. Capital structure refers to a company’s outstanding debt and equity. One is the firm's business risk—the risk pertaining to the line of business in which the company is involved. a. types of long-term fixed assets that a firm employs in its operations. D. Shareholders equity. 1 Capital structure refers to: a. the determination of the ideal mix of current versus long-term assets, b. the methods by which fixed assets are used to produce a tangible product. b) current assets and current liabilities. shareholders' equity. Thus, capital structure is only a part of the financial structure and it represents the permanent financing of the company. Infrastructure is the set of fundamental facilities and systems that support the sustainable functionality of households and firms. In other words, it means the composition of the firm's long term funds comprising of equity, preference and long-term loans. 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