Question

__________________ refers to make-up of a firm's capitalization.

a.
Capital budgeting

b.
Dividend policy

c.
Equity shares

d.
Capital structure​

Answer 1

Answer:

Option C is character equity shares

Answer 2

The correct answer is OPTION D: Capital Structure.

• The capital structure is the mix of debt and equity that a company uses to fund its assets and operations.
• Equity is a more costly, long-term source of finance with more financial flexibility from a business standpoint.
• Debt, on the other hand, is a less expensive, finite-to-maturity capital source that legally commits a company to predictable cash outflows with the option of refinancing at an unknown cost at a later date.
• These funding decisions may be guided by capital structure policies or targets set by management and the board of directors, resulting in the capital structure of a company.
• Factors like firm size and maturity influence capital structure, which affects a company's financing possibilities.