Asked by Jacob Delgado on May 16, 2024

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How much of a company's assets are financed from debt versus equity sources refers to the company's

A) capital structure.
B) maturity structure.
C) solvency.
D) liquidity.

Capital Structure

The mix of various forms of external funds and equity that a company uses to finance its operations and growth.

Debt Versus Equity

A comparison between using borrowed funds (debt) versus shareholder funds (equity) to finance business operations or growth.

  • Acquire knowledge on the elements of a firm's balance sheet (assets, liabilities, equity) and their meanings.
  • Explore the assessment of liquidity and financial flexibility, understanding their role in showcasing a corporation's capability to adhere to its obligations and exploit investment chances.
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PS
PAULINE SANTOSMay 16, 2024
Final Answer :
A
Explanation :
Capital structure refers to the mix of debt and equity financing used to fund a company's assets. It is a critical aspect of a company's financial management and can impact its profitability, risk profile, and ability to access capital markets. Maturity structure refers to the length of time until a debt obligation is due. Solvency refers to a company's ability to meet its long-term debt obligations, while liquidity refers to its ability to meet short-term obligations.