Question

Universal Computer Corporation is evaluating its use of debt and equity capital. Some members of the finance team think the company would be better served by issuing new debt and using the proceeds to buy back shares of its common stock. What type of managerial decision is this

Answer 1

Answer: capital structure

Step-by-step explanation:

In this case, the type of managerial decisions is referred to as the capital structure.

The capital structure is when a business combines both debt and equity in order to help its growth. finance its overall operations and growth. The debt can include loans, while the equity can be the retained earnings.