What is Capital Structure? | What do you mean by Capital Structure?

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Capital is the major part of all kind of business activities, which are decided by the size, and nature of the business concern. Capital may be raised with the help of various sources. If the company maintains proper and adequate level of capital, it will earn profit and they can provide more dividends to its shareholders.

Capital structure is the kind of securities and proportionate amounts that make up capitalization. It the mix of different sources of long term sources such as equity shares, preference share, and debenture, long –term loans and retained earnings.

Capital structure is the permanent of financing of the company represented by long term debt and equity.


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