Question

A firm's capital structure refers to the firm's:

A. mixture of various types of production equipment.
B. Investment selections for its excess cash reserves.
C. combination of cash and cash equivalents.
D. combination of accounts appearing on the left side of its balance sheet.
E. proportion of financing from current and long-term debt and equity.

Answer 1

A firm's capital structure refers to the firm's proportion of financing from current and long-term debt and equity.

Step-by-step explanation:

A firm's capital structure refers to the firm's proportion of financing from current and long-term debt and equity. It represents how the firm chooses to finance its operations and investments. For example, a firm may use a combination of borrowing from banks or issuing bonds, as well as selling stock to raise the financial capital needed for projects or expansion.