ECONOMICS

Detailed explanation-1: -Capital structure is the particular combination of debt and equity used by a company to finance its overall operations and growth. Equity capital arises from ownership shares in a company and claims to its future cash flows and profits.

Detailed explanation-2: -The term used to represent the proportionate relationship between debt and equity is Capital structure. Because by capital structure we mean to define the mix or proportion in which the capital of the company should be so as to maximize the benefit for the shareholders.

Detailed explanation-3: -Capital structure refers to the specific mix of debt and equity used to finance a company’s assets and operations.

Detailed explanation-4: -Capital structure refers to the proportion of debt and equity used for financing the operations of a business.

Detailed explanation-5: -The long-term debt to capitalization ratio, a variation of the traditional debt-to-equity (D/E) ratio, shows the financial leverage of a firm. It is calculated by dividing long-term debt by total available capital (long-term debt, preferred stock, and common stock).