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Masters in Finance - Key Terms and Questions and Answers Grade A+ 2023
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6

May 2023

2022/2023

A+
Capital Structure - -The combination of debt and equity used to finance a company's assets and operations. Debt comes in the form of bond issues or loans, while equity may come in the form of common stock, preferred stock, or retained earnings. When analysts refer to capital structure, they are most likely referring to a firm's debt-to-equity (D/E) ratio, which provides insight into how risky a company's borrowing practices are. Usually, a company that is heavily financed by debt has a...
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