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In: Finance

Mr. Webster, the CEO of Master Works, Inc., recently stated that the firm will maintain its...

Mr. Webster, the CEO of Master Works, Inc., recently stated that the firm will maintain its current policy of borrowing $0.40 for every $1 invested by shareholders. Mr. Webster was referring to the _____ policy of the firm.

Multiple Choice

  • Capital budgeting.

  • Working capital.

  • Capital structure.

  • Capital investment.

  • Financial planning.

Solutions

Expert Solution

Ans Capital structure.

Mr. Webster, the CEO of Master Works, Inc., recently stated that the firm will maintain its current policy of borrowing $0.40 for every $1 invested by shareholders. Mr. Webster was referring to the Capital structure policy of the firm. The capital structure is the combination of equity and debt used by the company to finance its operations and growth.

jeff jeffy answered 2 years ago
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