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chubhunter [2.5K]
3 years ago
11

One of the primary assumptions of capital structure analysis is that the level and variability of ____ is not expected to change

as changes in capital structure are contemplated.
a. debt
b. operating income
c. earnings before taxes
d. net income
Business
1 answer:
Nutka1998 [239]3 years ago
6 0

Answer:

One of the primary assumptions of capital structure analysis is that the level and variability of debt is not expected to change as changes in capital structure are contemplated.

a. debt

Explanation:

Capital structure analysis defines a blend of a company's long-term capital. The long-term capital in this case includes the firm's debt and equity. Capital structure is a financing model that supports growth. It can be expressed using the formula below;

CS=DO+TSE

where;

CS=capital structure

DO=debt obligations

TSE=total shareholder's equity

<em>Total shareholder's equity</em>

The total share holders equity can be determine using the expression;

TSE=Cs+Ps+Re

where;

Cs=common stock

Ps=preferred stock

Re=retained earning

The total share holders equity form part of the capital that has been invested.

<em>Debt</em>

A discussion of what debt should entail is a little complicated compared to the shareholder's equity. The level and variability of the debt is usually assumed to be constant as changes in capital structure are contemplated.

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swat32

Answer:

The correct option is;

B. Performing a premarket test before venturing into full-scale production

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Answer:

$1,792,000

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Answer:

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