GK
ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which is the items of capital structure?
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Debt Capital
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Equity Capital
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Preference Share Capital
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All of the above
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Explanation:
Detailed explanation-1: -Capital Structure is a combination of financial instruments like equity shares, preference shares, long-term loans, debentures, bonds or retained earnings that a business uses to raise funds for its operations.
Detailed explanation-2: -The term “capital structure” refers to: long-term debt, preferred stock, and common stock equity.
Detailed explanation-3: -Equity Capital. Equity capital is the money owned by the shareholders or owners. Debt Capital. Debt capital is referred to as the borrowed money that is utilised in business. Optimal Capital Structure. Financial Leverage. Importance of Capital Structure. Also See:
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