Capital Structure is called:
a) Quantitative aspect
b) Qualitative aspect
c) Both (a) and (b)
d) None of these
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Capital structure is called Quantitative aspect as well as Qualitative aspect.
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Capital Structure is called: Quantitative aspect
- it is the financial aspect of a business which is generally a long term of financing.
- it is made up of debt and equity securities.
- so it is considered as a permanent finance of the company.
- Capital Structure = Equity Capital + Preference Share Capital + Debt Capital.
- hence, it is the Quantitative aspect of finance planning of a business.
- the company's asset and operations are planned with the help of quantitative aspect.
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