Name the decision which affects both the profitability and the financial risk.

Capital budgeting decision

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All of the above

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Capital structure decision

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Financial planning decision

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Solution

The correct option is C
Capital structure decision

Answer (c) Capital structure decision
Explanation: Capital structure decision is concerned with the particular blend of equity and debt used to back an organisation’s resources and operational activities. According to a corporate point of view, equity addresses a more expensive, super durable wellspring of capital with more prominent monetary adaptability.

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