AFP
CTP · Question #23
(Topic 1) What is the PRIMARY issue that management needs to consider when determining capital structure?
The correct answer is D. Determining the mix of debt versus equity. See the full explanation below for the reasoning.
Question
- (Topic 1)
What is the PRIMARY issue that management needs to consider when determining capital structure?
Options
- AMaintaining control of ownership
- BComplying to rating agency and lender restrictions
- CUsing common stock as a source of funds
- DDetermining the mix of debt versus equity
How the community answered
(22 responses)- A5% (1)
- B5% (1)
- C14% (3)
- D77% (17)
Community Discussion
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