1. Capital structure is important as it helps maintains a proper and adequate level of capital, which as result enables the firm to earn high profits and provide more dividends to the shareholders. True False
1. Capital structure is important as it helps maintains a proper and adequate level of capital, which as result enables the firm to earn high profits and provide more dividends to the shareholders.
True False
2. Capital Structure refers to the kinds of proportionate securities that make up capitalization through different long-term sources like equities,
True False
3. Optimum capital estimation is necessary. But the formation of capital structure is highly important
True False
Capital Structure refers to a specific combination of debt and equity used by a company for financing its overall business operations and growth. Generally, Equity Capital comes from ownership in a company and debt is in the form of bond issues or loans.
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