Posted on : February 17, 2017
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Category : Finance
What is a ‘Capital Structure’. The capital structure is how a firm finances its overall operations and growth by using different sources of funds. Debt comes in the form of bond issues or long-term notes payable, while equity is classified as common stock, preferred stock or retained earnings. Short-term debt such as working capital requirements is also considered to be part of the capital structure.
- BREAKING DOWN ‘Capital Structure’