Which of the following is a capital structure decision A Det

Which of the following is a capital structure decision?

A. Determining which one of two projects to accept.

B. Determining how to allocate investment funds to multiple projects.

C. Determining the amount of funds needed to finance customer purchases of a new product.

D. Determining how much debt should be assumed to fund a project.

E. Determining how much inventory will be needed to support a project.

Solution

Capital structure decision would be one which would be affecting the capital structure of the company, i.e., the mix of equity, debt and preferred in the capital of the firm.

Among the given options, only Option D is affecting the capital structure as changing the amount of debt will change the debt in the capital structure.