Most common approach for analysing the capital structure of a firm is_______.

Ration Analysis

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Cash Flow Analysis

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Comparative Analysis

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Leverage Analysis

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Solution

The correct option is B Comparative Analysis
The most common approach for analyzing the capital structure of a firm is Comparative analysis. Comparative analysis is comparison of various ratios, balances, statements of different years of the company.
It is basically done to understand the trend off the company. Hence, its also known as trend analysis.

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Similar questions

When can a capital structure be considered optimum and what kind of capital structure is best for a firm?

List-I	List-II
(a) Modigliani-Miller approach	$1.$ Commercial paper
(b) Net Operating income approach	$2.$ Working capital
(c) Short-term money market instrument	$3.$ Capital structure
(d) Factoring	$4.$ Arbitrage

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