Question

11/ The firm's capital structure refers to its:

• short-term vs. long-term debt.

• debt vs. share capital

• current liabilities vs. current asset.

• long-term liabilities vs. capital assets.

12/ The cost of a security is a function of:

• the security's volatility.

• the security's cost relative to the cost of retained earnings.

• the security's trading volume.

• how the security is valued in the marketplace.

Answer 1

Answers-

Q 11)

The correct Option is debt vs. share capital

The firms capital structure is the weght of debt and equity.

The other options are incorrect.

Option short-term vs. long-term debt is the total debt of the firm

Option current liabilities vs. current asset are parts of liabilities and assets of company

Q 12)

The correct option is how the security is valued in the marketplace.

The market value of security is the cost of security.

The other Options are incorrect.

Option the security's volatility is the fluctuation of price

Option the security's cost relative to the cost of retained earnings is not relevant

option the security's trading volume is the number of buyers and sellers during trading.