What is capital structure class 12

Capital structure refers to the combination of borrowed funds and owners' fund that a firm uses for financing its fund requirements. Herein, borrowed funds comprise of loans, public deposits, debentures, etc. and owners' fund comprise of preference share capital, equity share capital, retained earning etc.

What do you mean by capital structure?

Capital structure refers to the specific mix of debt and equity used to finance a company's assets and operations. From a corporate perspective, equity represents a more expensive, permanent source of capital with greater financial flexibility.

What is meant by capital structure class 12th in business studies?

The meaning of Capital structure can be described as the arrangement of capital by using different sources of long term funds which consists of two broad types, equity and debt. The different types of funds that are raised by a firm include preference shares, equity shares, retained earnings, long-term loans etc.

What is capital structure with example?

1 This mix of debts and equities make up the finances used for a business's operations and growth. For example, the capital structure of a company might be 40% long-term debt (bonds), 10% preferred stock, and 50% common stock.

What is capital structure structure?

Capital structure is the mix of debt and equity on a company's balance sheet. It shows how much of a company is financed by creditors and owners, and also provides insights into the company's cost of capital—how much the capital in the business is costing the owners.