Question

What capital structure?...

Answer 1

it's a mix of a company's long-term debt, specific short-term debt, common equity and preferred equity. The capital structure is how a firm finances its overall operations and growth by using different sources of funds.

Answer 2

Company funds its operations through different financial sources.Capital structure of a company is the percentage of these sources to the total capital.

Eg: Capital Structure of Company X

Common Equity 30 %

Long term debt 40 %

Short term debt 20 %

Preferred Equity 10 %
-------------------
Total Capital 100 %