The capital structure of a company refers to the mix of debt and equity that a company uses to finance its operations and growth. Choosing an optimal capital structure is a critical decision for any business as it directly impacts the company’s risk profile and the cost of capital. Factors Determining Capital Structure These are
What is Capital Structure? Capital structure is the composition of different types of capital or financing a company employs to acquire resources necessary for its business operations and growth. Commonly, the capital structure comprises stockholders’ investments (equity capital) and long-term loans (loan capital). Meaning of Capital Structure Capital structure decision is concerned with the decision-making