Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. what is meant by the terms capital structure? what

What is meant by the terms capital structure? What are the elements of an organization’s capital...

50.1K

Verified Solution

Question

Finance

What is meant by the terms capital structure? What are theelements of an organization’s capital structure? Briefly describeeach of the elements. How do each affect the capital structure ofthe organization and value of the organization through the capitalstructure?

Answer & Explanation Solved by verified expert
4.2 Ratings (892 Votes)
The capital structure is the debtequity ratio of the company which defines that how much of the debt that company borrowed as per their equity in hand and the debt involves the debentures longterm loans and other borrowings and equity is consist of the equity shares and preferred shares and it shows the proportion of the debt and equity The Elements of an organizations capital structure are as follows 1 Shareholders fund These are the owners funds which creates capital by issue of the new shares and another option is to utilize the retained earnings    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: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

What is meant by the terms capital structure? What are theelements of an organization’s capital structure? Briefly describeeach of the elements. How do each affect the capital structure ofthe organization and value of the organization through the capitalstructure?

Other questions asked by students

Basic Math
1.2K views

18 Molly bought two heads of cabbage for 1 80 How many heads of cabbage...

Psychology
1.2K views

Discuss the solutions to the problems facing Caribbean society.

Psychology
1.2K views

Bandura considered personality as an interaction between three components: the environment, behavior, and one’s psychological processes (one’s...

General Management
1.2K views

Find a nonprofit/nonprofit campaign that you think is effective and makes you want to do something...

Biology
1.2K views

QUESTION 4 Match the repair response to its proper mechanism SOS Response Excision Repair Photo...

Basic Math
1.2K views

For the given function find the average rate of change over each specified interval f...

Basic Math
1.2K views

Recently we investigated a scatterplot on Gapminder org The table below shows the Income per...

Basic Math
1.2K views

The sum of two numbers is 56. The difference of the two numbers is 32....

Algebra
1.2K views

Which of the following is the graph C 8 8643 Ap Cu S 4 19...

Accounting
1.2K views

Discussion the following: 1. Batch Processing System 2. Strengths and weaknesses of the batch processing...

Accounting
1.2K views

Cutter Enterprises purchased equipment for $48,000 on January 1, 2018. The equipment is expected to...

Accounting
1.2K views

assuming that you are the municipal manager of XYZ local municipality , how will you...