Capital structure is a ratio of sources of finance.
Answers
Explanation:
Capital structure can be a mixture of a company's long-term debt, short-term debt, common stock, and preferred stock. ... When analysts refer to capital structure, they are most likely referring to a firm's debt-to-equity (D/E) ratio, which provides insight into how risky a company's borrowing practices are.
Answer:
Capital structure can be a mixture of a company's long-term debt, short-term debt, common stock, and preferred stock. ... When analysts refer to capital structure, they are most likely referring to a firm's debt-to-equity (D/E) ratio, which provides insight into how risky a company's borrowing practices are.
Explanation:
If you are a stock investor who likes companies with good fundamentals, then a strong balance sheet is important to consider when seeking investment opportunities. By using three broad types of measurements—working capital, asset performance, and capital structure—you may evaluate the strength of a company's balance sheet, and thus its investment quality.