a What factors need to be considered when determining the capital structure for a given company b How does the risk of bankruptcy represent a disadvantage to using debt ...

a Capital Structure comprises of two basic structures Equity Debt Capital structure means the proportion of debt and equity used for financing the operations of business Usually structure should be su ...

a. What factors need to be considered when determining the capital structure for a given company? b.

Question:

a. What factors need to be considered when determining the for a given company?
b. How does the risk of bankruptcy represent a disadvantage to using debt?
Capital Structure
Capital structure refers to a company’s outstanding debt and equity. The capital structure is the particular combination of debt and equity used by a finance its overall operations and growth. Capital structure maximizes the market value of a...