Gitman: Principl Manageri Finance_15 (15th Edition) (What's New in Finance)
Gitman: Principl Manageri Finance_15 (15th Edition) (What's New in Finance)
15th Edition
ISBN: 9780134476315
Author: Chad J. Zutter, Scott B. Smart
Publisher: PEARSON
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Chapter 13.2, Problem 13.9RQ
Summary Introduction

To discuss:

The business and capital risk which influence the capital structure decisions.

Introduction:

The capital structure is the company’s total finances in their overall operations and growth through multiple sources of funds. The debt comes through the form of bond issues and long term notes payable, while the equity is classified as common stock, preferred and retained earnings. The short term debt such as working capital requirements are considered as part of the capital structure.

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