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Which one of the following questions involves a capital structure decision?

a. Which one of two project proposals should the firm implement?
b. How should the firm allocate its limited available funds among acceptable projects?
c. How much funding should be allocated to financing customer purchases of a new product?
d. How much debt should the firm incur to fund a project?
e. How much inventory will be needed to support a project?

Sagot :

Martebi

There are different kinds of questions. The question that involves a capital structure decision is How much debt should the firm incur to fund a project.

What is a good debt-to-equity ratio?

This is known to often varies from firm to firm, a debt-to-equity ratio of around 2 or 2.5 is said to be considered good.

This ratio helps us to known that for every dollar put into in the firm, about 66 cents arises from debt, while the rest 33 cents is from the company's equity.

Learn more about how to fund a project from

https://brainly.com/question/508027

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