Question

Define capital structure and state it's components answer in brief ​

Answer 1

Answer:

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Answer 2

Answer:

Capital Structure refers to the proportion of money that is invested in a business. It has four components and it includes Equity Capital, Reserves and Surplus, Net Worth, Total Borrowings.

Components of Capital Structure:

They are as follows : Equity share capital: It is the basic source of financing activities of the business. Equity shares are shares which get dividend and repayment of capital after it is paid to preference shares. ... Retained earnings: It is an internal source of financing.

Explanation:

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