A capital structure that has small component of equity capital, reasonable level of retained earnings and an ever increasing component of debt is termed as: (A) Vertical Capital Structure (B) Inverted Pyramid Shaped Capi

CS Executive · Financial and Strategic Management · PYQS · December 2022
A capital structure that has small component of equity capital, reasonable level of retained earnings and an ever increasing component of debt is termed as: (A) Vertical Capital Structure (B) Inverted Pyramid Shaped Capital Structure (C) Horizontal Capital Structure (D) Pyramid Shaped Capital Structure
(A) Vertical Capital Structure
(B) Inverted Pyramid Shaped Capital Structure
(C) Horizontal Capital Structure
(D) Pyramid Shaped Capital Structure

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Financial Management

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