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

Rambo

6 April, 11:58

+1

Answers (1)

Know the Answer?

Kaylah Mora · 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