|
Post by account_disabled on Feb 11, 2024 1:31:27 GMT -8
This hints at how companies will finance their overall operations and growth. Capital structure can affect the return a firm makes to its investors or shareholders. It can also decide whether the firm is going down or disappointed. Capital structure is usually expressed as a debttoequity or debttoequity ratio. Equity and debt capital are used to subsidize or finance capital expenditures operations acquisitions and various investments. What is capital structure Definition Capital structure is defined as the combination Armenia Email List of longterm capital of a company consisting of debt and equity capital. It is a highly stable form of financing that supports the growth of the firm and its associated assets. Equity is associated with a stable source of and also has financial flexibility. Debt is a legal obligation of the company associated with a cheap and limited period of capital and a stable and promised cash flow with the need to refinance at an unknown cost at some point in the future. To understand. Capital structure Capital structure can be understood as the combination of longterm and shortterm debt along with common and preferred stock.
|
|