1.An example of a capital budgeting decision is deciding: A how many shares of s

ID: 2818978 • Letter: 1

Question

1.An example of a capital budgeting decision is deciding:

A how many shares of stock to issue.

B whether or not to purchase a new machine for the production line.

C how to refinance a debt issue that is maturing.

D how much inventory to keep on hand.

E how much money should be kept in the checking account.

Capital structure decisions include determining:

Multiple Choice

A which one of two projects to accept.

B how to allocate investment funds to multiple projects.

C the amount of funds needed to finance customer purchases of a new product.

D how much debt should be assumed to fund a project.

E how much inventory will be needed to support a project.

1.An example of a capital budgeting decision is deciding:

Correct option > B whether or not to purchase a new machine for the production line.

Capital decision is done for taking up new project or deciding on capital goods like purchasing new machine and plants

Capital structure decisions include determining:

Correct option is > D how much debt should be assumed to fund a project.

Debt and equity composition ratios are part of the capital structure decision making.

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.