2. A mix of a company's long-term debt, specific short-
term debt, common equity and preferred equity. The
capital structure is how a firm finances its overall
operations and growth by using different sources of
funds.
3. 1. Owner’s capital
i. Equity shares
ii. Preference shares
iii. Retained Earnings
2. Borrowed Capital
i. Debentures
ii. Term loans
5. Capital structure planning is very important to survive the
business in long run. After simple watching the
balance sheet of company, you see two sides of balance
sheet. One side is liability side and other side is asset
side. Liability side is the mixture of finance of
company which company has collected from internal
and external sources and it has been used or will be
used for development of company.
Liability side of balance sheet is made under perfect
capital structure planning.
6.
7. 1. Trading on Equity
2. Degree of control
3. Flexibility of financial plan
4. Choice of investors
5. Capital market condition
6. Period of financing
7. Cost of financing
8. Stability of sales
9. Sizes of a company