Question:
Which one of the following questions involves a capital structure decision?
A. How should the firm allocate its limited available funds among acceptable projects?
B. Which one of two project proposals should the firm implement?
C. How much debt should the firm incur to fund a project?
D. How much inventory will be needed to support a project?
E. How much funding should be allocated to financing customer purchases of a new product?
Answer:
C. How much debt should the firm incur to fund a project?
