The correct answer is C. Size of the company.
The capital structure of a company refers to the mix of debt and equity financing that a company uses to fund its operations. The capital structure of a company is determined by a number of factors, including the cost of capital, the composition of the current assets, the expected nature of cash flows, and the company’s risk tolerance.
The cost of capital is the rate of return that a company must earn on its investments in order to satisfy its investors. The cost of capital is affected by a number of factors, including the risk of the company’s investments, the tax rate, and the availability of capital.
The composition of the current assets refers to the types of assets that a company holds. The composition of the current assets is affected by a number of factors, including the company’s industry, the company’s business model, and the company’s risk tolerance.
The expected nature of cash flows refers to the timing and amount of cash flows that a company expects to generate in the future. The expected nature of cash flows is affected by a number of factors, including the company’s industry, the company’s business model, and the company’s risk tolerance.
The company’s risk tolerance refers to the amount of risk that a company is willing to take. The company’s risk tolerance is affected by a number of factors, including the company’s industry, the company’s business model, and the company’s management team.
The size of the company is not a factor that affects the capital structure of a company. The size of the company is not a factor that affects the cost of capital, the composition of the current assets, the expected nature of cash flows, or the company’s risk tolerance.