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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 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 ...

    Solution Summary

    The answer explains the concept of capital strucuture and financial leverage