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Explain or discuss the concept of capital structure

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Explain or discuss with your own words of the following concept:

1. Capital Structure

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Solution Summary

The solution provides six short paragraphs for various definitions of what capital structure is and exactly what is included in capital structure. It is a good survey of current thinking about the term.

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Capital Structure:

Following are several ways to think about what capital structure is:

It is the more permanent and long term financing of a corporation which includes common stock, preferred stock, long term debt, and retained earnings.

It is the right side or credit side of the balance sheet minus any short term financing or other current ...

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