Q » Define capital structure.

Christopher

01 Nov, 2025

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A » Capital structure refers to the mix of debt and equity financing used by a company to fund its operations and growth. It encompasses long-term debt, short-term debt, common equity, and preferred equity. The optimal capital structure balances risk and return, minimizing the cost of capital while maximizing shareholder value. Decisions on capital structure significantly impact a company's financial stability and strategic flexibility.

Michael

01 Nov, 2025

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A »Capital structure refers to the mix of debt and equity a company uses to finance its operations. For example, a company with 60% debt and 40% equity has a capital structure that is more heavily reliant on borrowing. This mix affects the company's risk, cost of capital, and financial flexibility, ultimately influencing its overall value and profitability.

Ronald

01 Nov, 2025

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A »Capital structure refers to the mix of debt and equity that a company uses to finance its operations and growth. It is a crucial aspect of financial management, determining the firm's risk and cost of capital. A well-optimized capital structure balances risk and return, ensuring the company is adequately funded while maximizing shareholder value.

Edward

01 Nov, 2025

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A »Capital structure refers to the mix of debt and equity financing used by a company to fund its operations and investments. It represents the proportion of debt, such as loans and bonds, and equity, including common stock and retained earnings, that a firm uses to finance its activities, influencing its financial risk, cost of capital, and overall value.

Steven

01 Nov, 2025

0 | 0

A »Capital structure refers to the mix of debt and equity financing a company uses to fund its operations and growth. For example, if a company raises $70 million through equity and $30 million through debt, its capital structure is 70% equity and 30% debt. A balanced capital structure helps minimize the cost of capital while maximizing shareholder value and financial stability.

Charles

01 Nov, 2025

0 | 0

A »Capital structure refers to the mix of debt and equity a company uses to finance its operations and investments. It represents the proportion of debt, such as loans and bonds, and equity, including common stock and retained earnings, that make up a company's total capital, influencing its financial risk, cost of capital, and overall value.

Anthony

01 Nov, 2025

0 | 0

A »Capital structure refers to the mix of debt and equity that a company uses to finance its operations and growth. It is a critical aspect of financial management, as it influences the risk and return profile of a company. An optimal capital structure balances the cost of capital with financial risk, helping maximize shareholder value while ensuring sufficient liquidity and flexibility for future investments and obligations.

Matthew

01 Nov, 2025

0 | 0

A »Capital structure refers to the mix of debt and equity a company uses to finance its operations. For example, a company with 60% debt and 40% equity has a capital structure that is more debt-heavy, potentially increasing financial risk but also potentially amplifying returns on equity through leverage.

Daniel

01 Nov, 2025

0 | 0

A »Capital structure refers to the mix of debt and equity that a company uses to finance its operations and growth. It is crucial for determining the firm's financial risk and cost of capital, influencing both profitability and valuation. An optimal capital structure balances these elements to achieve a company's financial objectives while minimizing the cost of capital.

Joseph

01 Nov, 2025

0 | 0

A »Capital structure refers to the mix of debt and equity financing used by a company to fund its operations and investments. It represents the proportion of debt, such as loans and bonds, and equity, including common stock and retained earnings, that a firm uses to finance its activities, impacting its financial risk, cost of capital, and overall value.

William

01 Nov, 2025

0 | 0

A »Capital structure refers to the mix of debt and equity a company uses to finance its operations and growth. For example, a firm might use 60% equity and 40% debt. Equity includes stocks, while debt involves loans and bonds. A balanced capital structure can optimize returns, minimize costs, and reduce financial risk. Companies strategically adjust their capital structure to maintain flexibility and achieve financial goals.

James

01 Nov, 2025

0 | 0