Question

1. Distinguish between capitalisation and capital structure.​

Answer 1

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❥Capitalisation is the sum total of shares and debentures of a total capital of a firm. Capital structure is composition of long term sources of debt and equity. Financial leverage by using Debt fund or borrowing fund making money.

Answer 2

Answer:

Capital structure refers to the combination or mix of debt and equity which a company uses to finance it's long term operation. Whereas Capitalistion means how much amount of long term finance is required to carry on the business 2) capital structure is a qualitative concept while capitalistion is a quantitative concept.

Capitalisation is the sum total of shares and debentures of a total capital of a firm. Capital structure is composition of long term sources of debt and equity. Financial leverage by using Debt fund or borrowing fund making money. combination of equity capital and fixed financial securities financial leverage are divided into two favourable and unfavourable.