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Q » Define capital structure.
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.
01 Nov, 2025
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