Which of the following would NOT be a part of a firm's capital structure? a. long-term bonds b....
Question:
Which of the following would NOT be a part of a firm's capital structure?
a. long-term bonds
b. preferred stock
c. short-term notes payable
d. common stock
Short-Term Financing:
The short-term sources of financing cannot help a company's long-term solvency. They enable to manage the day-to-day operations. Short-term sources are due within the next twelve months.
Answer and Explanation: 1
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Correct Answer: Option c. short-term notes payable.
Capital structure lists the long-term sources a company uses and the weights of each source to...
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What is Capital Structure Theory? - Definition & Overview
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Chapter 10 / Lesson 3
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Learn about capital structure and understand the different types of capital structure theories. Study examples of these financing theories and see how they work.
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