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Determining the amount of money to borrow to finance a 10-year project is a capital structure...

Determining the amount of money to borrow to finance a 10-year project is a capital structure decision. True or false

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Expert Solution

TRUE:

The financing decision / fund sourcing always hover around the spread and sourcing of funds from various available sources like equity, preference equity, borrowings etc; Depending on the requirement, tenure, quantum and cost of capital of the funding, these options shall required to be chosen to have optimal capital structure thus to lower the burden of cost of capital on the organisation; This is termed as Capital Stucturing;

jeff jeffy answered 2 years ago
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