Business Studies, asked by studious37261, 11 months ago

Difference between capitalisation and capital structure in points

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Answered by queensp73
1

Hello !

In finance, capitalization or book value is the total of a company's debt and equity. Market capitalization is the dollar value of a company's outstanding shares and is calculated as the current market price multiplied by the total number of outstanding shares.

The capital structure is the particular combination of debt and equity used by a company to finance its overall operations and growth. Debt comes in the form of bond issues or loans, while equity may come in the form of common stock, preferred stock, or retained earnings.

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