What a response to a peer that states A company's capital structure can be determined by opportunity cost analysis. An organization must compensate its shareholders or lenders when it issues equity or takes on debt. Each option also comes with an opportunity cost. The opportunity cost is the difference between what a consumer, investor, or business would get if they chose another option instead of the one that they already have. Although it can't be predicted accurately, taking into consideration these costs can help inform decisions.

Answer rating: 100% (QA)

The perspective on determining a companys capital struct... View the full answer