GB550
Purdue University
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Summary GB550 Unit 5 Assignment Financial Management Purdue University Global
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---5April 20222021/2022A+
- What is meant by capitalization? What is meant by a firm’s capital structure? For 
financial planning purposes, explain why either book or market value should be used to 
determine the firm’s capital structure. What is capital structure theory? 
Capitalization is the process of evaluation and maximizing a company’s capital 
structure i.e. debts and equities. Capital Structure is a firm’s combination of deb 
and equity. Capital structure is used to determine the thresholds for debt and 
e...
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