Political Science, asked by soneeniki, 9 months ago

capital structure is composed of owned funds and borrowed funds. (justify)

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Answered by SaI20065

From a technical perspective, the capital structure is the careful balance between equity and debt that a business uses to finance its assets, day-to-day operations, and future growth. Capital Structure is the mix between owner’s funds and borrowed funds.

FUNDS = Owner’s funds + Borrowed funds.

Owner’s funds = Equity share capital + Preference share capital + reserves and surpluses + retained earnings = EQUITY

Borrowed funds = Loans + Debentures + Public deposits = DEBT

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