Capital Structure MCQs

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Which of the following is an advantage of equity financing in comparison to debt financing?






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Assume that Company A and Company B are alike in all respects except that Company A utilizes more debt financing and less equity financing than does...






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Which of the following is not a source of capital used to finance long-term projects?






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Which of the following factors generally does not impact management’s capital structure strategy?






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A firm with a higher degree of operating leverage when compared to the industry average implies that the






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When a company increases its degree of financial leverage






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A company has made the decision to finance next years capital projects through debt rather than additional equity. The benchmark cost of capital fo...






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Sylvan Corporation has the following capital structure: Debenture bonds $10,000,000 Preferred equity 1,000,000 Common equity 39,000,000 The financ...