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.

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