Which of the following factors does not affect the capital structure of a company?
A
Cost of capital
B
Composition of the current assets
C
Size of the company
D
Expected nature of cash flows
Correct Answer: Composition of the current assets
Composition of the current assets does not affect the capital structure of a company. Current assets include cash, cash equivalents, accounts receivable, stock inventory, marketable securities, pre-paid liabilities, and other liquid assets.