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 firm, i.e. in a firm having a properly designed capital structure the aggregate value of the claims and ownership interests of the shareholders are maximized. The capital structure is sometimes referred as the “finance leverage” as each business has to consider the optimal ratio for running the between debt and equity.

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Sheehan Corp. is forecasting an EPS of $3.00 for the coming year on its 500,000 outstanding shares...... capital structure... 40% debt and 60% equity (based on market values), its investment bankers believe its weighted average cost of...

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The meaning of Capital structure can be described as the arrangement of capital by using different sources of long-term funds which consists of two broad types, equity and debt. The different types of funds that are raised by a...

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