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    Tell the complete details about Capital structure in a business organization?

    Good Morning
    Tell the details about Capital structure in a business organization?





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  3. #2
    apu_31
    Join Date
    May 2012
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    271

    Re: Tell the complete details about Capital structure in a business organization?

    Hello there,

    In business terms, capital structure refers to the way a corporation finances its assets through the combination of equity and debt.
    Debt is consists of loans and other types of credit that have to be repaid at a future date, usually with interest. Equity is selling a partial interest in the company to investors, usually in the form of shares whether equity or preferential.

    The standard ratio of equity to debt is 20:80. That is a firm's ratio of debt to total financing is 80% and that of equity is 20 %.

    Hope your query has been resolved now

    All the very best!
    Apu_31




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