Definitions for capital structure
cap·i·tal struc·ture

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1. Capital structure

   In finance, capital structure refers to the way a corporation finances its assets through some combination of equity, debt, or hybrid securities. A firm's capital structure is then the composition or 'structure' of its liabilities. For example, a firm that sells $20 billion in equity and $80 billion in debt is said to be 20% equity-financed and 80% debt-financed. The firm's ratio of debt to total financing, 80% in this example, is referred to as the firm's leverage. In reality, capital structure may be highly complex and include dozens of sources. Gearing Ratio is the proportion of the capital employed of the firm which come from outside of the business finance, e.g. by taking a short term loan etc. The Modigliani-Miller theorem, proposed by Franco Modigliani and Merton Miller, forms the basis for modern thinking on capital structure, though it is generally viewed as a purely theoretical result since it disregards many important factors in the capital structure process. The theorem states that, in a perfect market, how a firm is financed is irrelevant to its value. This result provides the base with which to examine real world reasons why capital structure is relevant, that is, a company's value is affected by the capital structure it employs. Some other reasons include bankruptcy costs, agency costs, taxes, and information asymmetry. This analysis can then be extended to look at whether there is in fact an optimal capital structure: the one which maximizes the value of the firm.

How to pronounce capital structure?

1. Alex

   US English

   David

   US English

   Mark

   US English

   Daniel

   British

   Libby

   British

   Mia

   British

   Karen

   Australian

   Hayley

   Australian

   Natasha

   Australian

   Veena

   Indian

   Priya

   Indian

   Neerja

   Indian

   Zira

   US English

   Oliver

   British

   Wendy

   British

   Fred

   US English

   Tessa

   South African

How to say capital structure in sign language?

Numerology

1. Chaldean Numerology

   The numerical value of capital structure in Chaldean Numerology is: 2

2. Pythagorean Numerology

   The numerical value of capital structure in Pythagorean Numerology is: 9

Examples of capital structure in a Sentence

1. Jim Sanford:

   This very quickly dematerializes from a growth story into a company that's really standing still, just looking to right its capital structure, there's not a lot of equity and market cap to go to, to issue equities and convertible bonds against.

2. Scott Perekslis:

   The company refinanced all its debt at various levels resulting in a very clean, simple capital structure and meaningfully reduced total leverage.

3. Manuela Herzer:

   This is an example, putting Mr. Redstone aside, where the minority shareholders have no way to hold the board accountable, our view is that if you’re tapping into the public markets, you should have a one-share, one-vote capital structure.

4. Brent Humphries:

   We have built our platform to be able to invest across the capital structure. We have the ability to structure and price different levels of risk, ranging from 7% yield to mid-to-high teens.

5. Thomas Russo:

   You've got such good candidates, i think they'll adopt a different capital structure approach, which will include a healthy, healthy large dividend.

References

1. ^ Wikidata
   https://www.wikidata.org/w/index.php?search=capital structure