MANAGEMENT

Detailed explanation-1: -Capital structure describes the mix of a firm’s long-term capital, which is a combination of debt and equity. Capital structure is a type of funding that supports a company’s growth and related assets. Sometimes it’s referred to as capitalization structure or simply capitalization.

Detailed explanation-2: -Capital market, special financial institution, banks, non-banking financial companies, retained earnings and foreign investment and external borrowings are the main sources of long-term finances for companies. securities market.

Detailed explanation-3: -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).

Detailed explanation-4: -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.