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Capital Structure

1. Introduction to Capital Structure The term capital structure refers to the relationship between the various long-term source financing such as equity capital, preference share capital and debt capital. Deciding the suitable capital structure is the important decision of the financial management because it is closely related to the value of the firm.  A company […]

Cost of Capital

1. Introduction to Cost of Capital The various sources from which the long term requirement of the capital can be met. Each of these sources involves some cost. The cost of capital can be defined as ‘”the rate of which an organization must pay to the suppliers of capital for the use of their funds”. […]

Capital Structure Definition

Capital structure is a part of financial structure and refers to the proportion of various kinds of securities raised by a firm as long-term finance. In other words, it means the composition of a firm’s long term funds comprising equity shares, preference shares and long-term loans.  According to Gerstenberg, “Capital structure or financial structure of […]

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