Toyota deciding to issue $175 million in long-term debt is an example of which of the following corporate financial decisions?
A. Working Capital Management
B. Capital Budgeting
C. Growth and Acquisition Strategy
D. Capital Structure
E. Risk Management

Respuesta :

Answer:

Capital Structure.

Explanation:

Toyota deciding to issue $175 million in long-term debt is an example of Capital Structure of corporate financial decisions.

Capital Structure is the distribution of the debt and equity that makes the finance of the company.

Capital Structure can be obtained by two ways and both ways of obtaining funds are further divided-

      1. Shareholder's Funds

          a. Equity Capital

          b. Preference Capital

          c. Retained Earning

      2. Borrowed Funds

         a. Debenture

         b. Term loans

        c. Public Deposit

 

Toyota deciding to issue $175 million in long-term debt is an example ofcapital structure under the financial decisions of the company.

What is capital structure?

Capital structure denotes the particular combination of equity and debt which is used to finance the assets and operations of a company.

Capital structure is also the outcome of such factors relates to the size and maturity of the company, which affect the financing options of a company may have available.

Capital Structure can be acquired by two structures and both ways of obtaining funds are further divided-

     1. Shareholder's Funds:

         a. Equity share Capital,

         b. Preference share Capital,

         c. Retained Earning.

     2. Borrower's Funds:

        a. Debenture

        b. Term loans,

       c. Public Deposit.

Therefore, the decision of Toyota regarding long-term debt is an example of capital structure under corporate financial decisions.

Learn more about  corporate financial decisions, refer:

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