Question

What is a capital structure

Answer 1

Answer:

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.

Explanation:

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Answer 2

In basic terms,capital structure refers to the financial liabilities and debt incurred by a company or business organisation in the course of its operational duration.

Explanation:

Capital structure basically implies all the outstanding financial liabilities and debts held by a company or business organisation and enables to evaluate the overall investment that has been required to finance all its business activities and projects.It is also an important indicator of the overall financial risk held by the company in terms of any financial investment and the ability of the company to pay back the outstanding liabilities and equity.Capital structure basically provides a clear picture on the various distinctions or types of debt and equity that the company is liable to pay back at a certain point in time in business.