The term capital structure refers

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Reference no: EM132010298

1. The term "capital structure" refers to:

the amount of current versus long-term debt on the balance sheet.

the amount of current versus fixed assets on the balance sheet.

the amount of long-term debt versus equity on the balance sheet.

none of these.

2. A capital budgeting project analysis at your firm currently shows Year 2 operating income of $1.5 million and depreciation of $500,000. If the relevant tax rate is 40.0%, what is Year 2 net incremental cash flow?

a) $900,000

b) $2.0 million

c) $1.4 million

Reference no: EM132010298

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