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15 July, 16:26

Capital structure decisions include determining:

1. which one of two projects to accept.

2. how to allocate investment funds to multiple projects.

3. the amount of funds needed to finance customer purchases of a new product.

4. how much debt should be assumed to fund a project.

5. how much inventory will be needed to support a project.

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  1. 15 July, 18:12
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    4. how much debt should be assumed to fund a project.

    Explanation:

    The capital structure is a mix of the debt and equity

    In equation form, it is

    Capital structure = Debt + equity

    These two items should be taken for financing the assets of the company

    And, the other options that are mentioned are related to the techniques of the capital budgeting

    Therefore, the correct option is 4.
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