Question

Which of the following is an example of a capital structure?Multiple Choice10 percent current liabilities and 90 percent long-term debt15 percent current assets and 85 percent fixed assets20 percent debt and 80 percent equity

Answer 1

Answer:

20 percent debt and 80 percent equity

Explanation:

The capital structure is a combination of both debt and equity. The equity can be in common stock or preferred stock so that it could make the finance for the company

In mathematically,

Capital structure = Debt + equity

So in the given options, the last option is correct as it shows the 20% of debt and 80% of equity which represents the capital structure