BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Capital structure refers to the specific mix of debt and equity used to finance a company’s assets and operations. From a corporate perspective, equity represents a more expensive, permanent source of capital with greater financial flexibility.

Detailed explanation-2: -Capital structure can be a mixture of a company’s long-term debt, short-term debt, common stock, and preferred stock. A company’s proportion of short-term debt versus long-term debt is considered when analyzing its capital structure.

Detailed explanation-3: -Capital structure is the mix of debt and equity on a company’s balance sheet. It shows how much of a company is financed by creditors and owners, and also provides insights into the company’s cost of capital-how much the capital in the business is costing the owners.

Detailed explanation-4: -The debt-to-equity ratio tells a company the amount of risk associated with the way its capital structure is set up and run. The ratio highlights the amount of debt a company is using to run their business and the financial leverage that is available to a company.

Detailed explanation-5: -The term “capital structure” refers to: long-term debt, preferred stock, and common stock equity.