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Capital structure

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Capital structure is one of the most complex areas of financial decision making because of its interrelationship with other financial decision variables. What is a firm's capital structure? what ratios assess the degree of financial leverage in a firm's capital structure?

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The answer explains the concept of capital strucuture and financial leverage

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The term capital structure is used to represent the proportionate relationship between debt and shares . The various means of financing represent the financial structure of an enterprise. Thus the composition of debt and shares represents the capital ...

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