Capital Structure

Capital Structure, It’s Importance And Optimal Capital Structure

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Capital Structure, Importance And Optimal Capital Structure

Meaning Of Capital Structure The term “capital structure” refers to the proportion of the firm’s total capital allocated to various long-term sources of finance. Long-term financing comes primarily from the following sources: Proprietors Funds include equity capital, preference capital, reserves and surpluses (ie, retained earnings), and Borrowed Funds include long-term debts such as bank loans, … Read more

Features or Qualities of Optimum or Sound Capital Structure

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Features or Qualities of Optimum or Sound Capital Structure

The qualities of an optimum or sound capital structure should have the following characteristics : A sound capital structure typically has several key features that enable a company to operate and grow sustainably over the long term. Here are some of the most important features: Qualities of Sound or Optimum Capital Structure Simplicity The capital … Read more