Answer:
C. types of fixed assets owned by the firm. mix of debt and equity used to finance the firm's assets.
Explanation:
Capital structure refers to the combination of equity and debts that are used to finance a company's assets and operations. Debts are borrowed funds and may include loans and bond. Equity is the owner's funds and maybe in the form of shares and retained earnings. The capital structure consists of both long term and short-term debts.
The ratio of debts to equity helps evaluate how risky a company's borrowing practices are. Investors consider a company with a high debt-to-equity ratio riskier. A company's optimal capital structure is the business's ideal balance between equity and debt financing.
