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 are 4 examples of capital?
The four major types of capital include working capital, debt, equity, and trading capital. Trading capital is used by brokerages and other financial institutions.
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 the capital structure of a company?
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.