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Management · Q96

Financial Management

Graduate and Post Graduate · Management · question 96

Q96

Which of the following factors does not affect the capital structure of a company?

A.
Cost of capital
B.
Composition of the current assets
Answer
C.
Size of the company
D.
Expected nature of cash flows

Answer: Option B

Solution

Answer: Option B
Solution:
Composition of the current assets does not affect the capital structure of a company. Current assets include cash, cash equivalents, accounts receivable, stock inventory, marketable securities, pre-paid liabilities, and other liquid assets.