Capital structure is the combination of capitals from different sources of finance. The capital of a company consists of equity share holders’ fund, preference share capital and long term external debts. The objective of a company is to maximise the value of the company and it is prime objective while deciding the optimal capital structure. Capital Structure decision refers to deciding the forms of financing (which sources to be tapped); their actual requirements (amount to be funded) and their relative proportions (mix) in total capitalisation. This is applicable for May 22, Nov 22 exams.
What you’ll learn
- Visit https://youtu.be/NZnL2BlDAAk to view demo lecture of Financial Management