Determining the number of shares of stock to issue is an example of a capital structure decision
What is capital structure?
Capital structure refers to the various of capital funding the firm has its financing sources, a company might combine stocks, bonds as well as the preferred stocks in its capital structure, which means that such firm is financed from three different sources.
Specifically, determining the optimum of level of each financing alternative to include in the company's total capital is also referred to as capital structure.
In essence, the correct response in this case is that the decision to determine the number of shares to issue by the company in need of fresh finance is a capital structure decision
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