Capital Structure

What is Capital Structure?

Capital Structure is the combination of debt and equity that a company uses to finance its operations and investments. It represents the way a company raises and manages funds from various sources to meet its financial needs.

What is the importance of Capital Structure?

The proportion of debt and equity in a company's capital structure can have a significant impact on its financial risk, cost of capital, and overall value. Companies may adjust their capital structure over time to optimize their financing strategy and achieve their financial goals.

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