The financing decisions

A. are determined by bankers who have the most experience in financing businesses.

B. determine the combination of long-term debt and equity that will be used to finance the firm's long-term productive assets. The optimal capital structure is the combination that will minimize the firm's overall cost of borrowing.

C. have no material impact on the firm's value and the appropriate financing decisions are often left to the banks or lenders.

D. determine the level of short-term liabilities to take on to ensure that the firm will have sufficient financial and operating liquidity.