What capital structure?...

Question

anonymous · Answer

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.

anonymous · Answer

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 %