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    Answer the following questions: What is meant by capital str

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    Answer the following questions:
    What is meant by capital structure?
    What metrics can be used to assess improvement or deterioration in the capital structure?
    How is risk influenced by the capital structure?
    What is the effect of increased or decreased risk in the capital structure?

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    What is meant by capital structure?

    Capital structure refers to how the company mainly has the accounts made up, from where it gets most of their capital for finances from. For example, some companies will have a mixed capital structure - they sell stock to get capital, they take out bank loans to raise more capital, and then they possibly buy back some of their own stock (called treasury stock) when they need to raise even more capital. This make-up of how they raise capital is called their capital structure.

    What ...

    Solution Summary

    Answer the following questions:
    What is meant by capital structure?
    What metrics can be used to assess improvement or deterioration in the capital structure?
    How is risk influenced by the capital structure?
    What is the effect of increased or decreased risk in the capital structure?

    $2.19

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