business process management solution - According to Gretenberg,ca

Capital structure refers to how a company finances its operations and growth through a mix of debt and equity. This mix includes long-term funds like shareholder capital (equity shares, preference shares, retained earnings) and borrowed capital (debentures, bonds, and long-term loans). Understanding a company's capital structure is crucial because it impacts its financial risk, cost of capital, and overall valuation, making it a cornerstone of strategic financial planning.

What is Capital Structure?

The term "capital structure" describes the combination of long-term financing a company uses. As defined by Gretenberg, it refers to the specific types of securities issued and their proportionate amounts that make up a company's total capitalization. This includes all long-term funds,