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

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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?

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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
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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?

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