Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. what is capital structure and how important it is?

What is capital structure and how important it is? How is the cost of capital related...

50.1K

Verified Solution

Question

Finance

What is capital structure and how important it is? How is thecost of capital related to capital structure?

Answer & Explanation Solved by verified expert
4.1 Ratings (770 Votes)
The capital structure of a firm is based on the arrangement of different sources of funds which are used to finance the operations of the firm It is generally consists of debt preferred stock and common equity It is important because an optimum mix of capital    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

What is capital structure and how important it is? How is thecost of capital related to capital structure?

Other questions asked by students

Q

1) As you plan for a new corporate project, you find that during the first year...

Finance
Q

Describe a low carbohydrate diet and a low fat diet. Be sure to describe them at...

Chemistry
Q

Question 4 New nonenveloped virus release accurs by SP40 budding both lysis and budding both...

Biology
Q

PURPOSE The how to take care of Also learn how to properly use it EXPECTED...

Biology
Q

The points C 2 8 D 7 6 E 5 1 and F 0 3...

Geometry
Q

Dawson Toys, Limited, produces a toy called the Maze with the following standards: ...

Accounting
Q

Carla Vista Company manufactures bowling balls through two processes: Molding and Packaging. In...

Accounting
Q

PLEASE HELP ASAP!!!!!! Morton Company's budgeted variable manufacturing overhead is $2.70 per direct...

Accounting
Q

196 Chapter s 5.7 New Horizon Bhd presents the following balances as at 31 December...

Accounting
Q

Northwood Company manufactures basketballs. The company has a ball that sells for $25. At present,...

Accounting
Q

Suppose you are the new controller of a small but growing company and you find...

Accounting
Q

Circular 230 requires due diligence from a practitioner in all of the following circumstances except...

Accounting