Capital structure refers to:
AOffice layout
BThe mix of debt and equity used to finance a firmCORRECT
CInventory levels
DNumber of shareholders
CFACorporate Finance
AI
Toaster Teacher
Why the answer is B, and why the others tempt you.
Capital structure = proportion of debt vs equity in financing. Optimal mix minimises WACC.
Want this in Pidgin, Yoruba, Igbo or Hausa? Sign up free →
Practice more Corporate Finance questions
CFA Corporate Finance has thousands more questions like this — with Worked answers on every one.