If I have to write theories of capital structure in very few lines, I will only say that it propounds or presents the effect on overall cost of capital and market or total value of firm, if I change my capital structure from 50: 50 to any other proportion. First 50 represent the share capital and second 50 represent the Debt.
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How a firm has funded assets is revealed by the capital structure.
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As a Stabilized Transaction.
place capital, structure deals, and increase the value of their assets.
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Eventually, the company determines which capital structure it will use to operate long term. This process of evolution brings us to the next set of ratios. Business risk ratios examine a company’s capital structure.
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