Question

Explain various factors determining capital structure of corporate entity

Answer 1

Factors Determining Capital Structure. Trading on Equity- The word “equity” denotes the ownership of the company. If the company's management policies are such that they want to retain their voting rights in their hands, the capital structure consists of debenture holders and loans rather than equity shares.

Answer 2

Explanation:

The steps to determining your Capital Structure are as follows: Identify all of the corporation's capital components by examining the most recent financial statements.

Compile a list of all debt and equity, including retained earnings, common shares, debt financing and contributions.