Capital structure: It refers to that structure which shows the combination of arranged funds from different sources of finance such as equity and debt. To Explain : The components of the firm’s capital structure.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 16, Problem 1CC

Summary Introduction

Capital structure: It refers to that structure which shows the combination of arranged funds from different sources of finance such as equity and debt.

To Explain: The components of the firm’s capital structure.

Expert Solution & Answer

Answer to Problem 1CC

Solution:

The components which constitute the firm’s capital structure are mentioned below:

The all long-term sources of capital constitute the capital structure.
Few examples of long-term debt are common stock and preferred stock.
To decide capital structure means to decide upon the ratio of owned capital (i.e. equity share capital, preference share capital, reserves & surplus) to borrowed capital (i.e. debentures, loans, Public Deposits etc)

Explanation of Solution

A firm can raise its capital by debt or equity.
It is not necessary that proportion of debt and equity is equal in the capital structure.

Conclusion

Therefore, the debt and equity (long-term capital sources) constitute the firm’s capital structure.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

The maturity value of an $35,000 non-interest-bearing, simple discount 4%, 120-day note is:

Carl Sonntag wanted to compare what proceeds he would receive with a simple interest note versus a simple discount note. Both had the same terms: $18,905 at 10% for 4 years. Use ordinary interest as needed. Calculate the simple interest note proceeds. Calculate the simple discount note proceeds.

What you're solving for Solving for maturity value, discount period, bank discount, and proceeds of a note. What's given in the problem Face value: $55300 Rate of interest: 10% Length of note: 95 days Date of note: August 23rd Date note discounted: September 18th Bank discount rate:9 percent

Answer 2

Question

Chapter 16, Problem 1CC

Summary Introduction

Capital structure: It refers to that structure which shows the combination of arranged funds from different sources of finance such as equity and debt.

To Explain: The components of the firm’s capital structure.

Expert Solution & Answer

Answer to Problem 1CC

Solution:

The components which constitute the firm’s capital structure are mentioned below:

The all long-term sources of capital constitute the capital structure.
Few examples of long-term debt are common stock and preferred stock.
To decide capital structure means to decide upon the ratio of owned capital (i.e. equity share capital, preference share capital, reserves & surplus) to borrowed capital (i.e. debentures, loans, Public Deposits etc)

Explanation of Solution

A firm can raise its capital by debt or equity.
It is not necessary that proportion of debt and equity is equal in the capital structure.

Conclusion

Therefore, the debt and equity (long-term capital sources) constitute the firm’s capital structure.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 16, Problem 1CC

Summary Introduction

Capital structure: It refers to that structure which shows the combination of arranged funds from different sources of finance such as equity and debt.

To Explain: The components of the firm’s capital structure.

Expert Solution & Answer

Answer to Problem 1CC

Solution:

The components which constitute the firm’s capital structure are mentioned below:

The all long-term sources of capital constitute the capital structure.
Few examples of long-term debt are common stock and preferred stock.
To decide capital structure means to decide upon the ratio of owned capital (i.e. equity share capital, preference share capital, reserves & surplus) to borrowed capital (i.e. debentures, loans, Public Deposits etc)

Explanation of Solution

A firm can raise its capital by debt or equity.
It is not necessary that proportion of debt and equity is equal in the capital structure.

Conclusion

Therefore, the debt and equity (long-term capital sources) constitute the firm’s capital structure.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 16, Problem 1CC

Summary Introduction

Capital structure: It refers to that structure which shows the combination of arranged funds from different sources of finance such as equity and debt.

To Explain: The components of the firm’s capital structure.

Expert Solution & Answer

Answer to Problem 1CC

Solution:

The components which constitute the firm’s capital structure are mentioned below:

The all long-term sources of capital constitute the capital structure.
Few examples of long-term debt are common stock and preferred stock.
To decide capital structure means to decide upon the ratio of owned capital (i.e. equity share capital, preference share capital, reserves & surplus) to borrowed capital (i.e. debentures, loans, Public Deposits etc)

Explanation of Solution

A firm can raise its capital by debt or equity.
It is not necessary that proportion of debt and equity is equal in the capital structure.

Conclusion

Therefore, the debt and equity (long-term capital sources) constitute the firm’s capital structure.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 16, Problem 1CC

Summary Introduction

Capital structure: It refers to that structure which shows the combination of arranged funds from different sources of finance such as equity and debt.

To Explain: The components of the firm’s capital structure.

Expert Solution & Answer

Answer to Problem 1CC

Solution:

The components which constitute the firm’s capital structure are mentioned below:

The all long-term sources of capital constitute the capital structure.
Few examples of long-term debt are common stock and preferred stock.
To decide capital structure means to decide upon the ratio of owned capital (i.e. equity share capital, preference share capital, reserves & surplus) to borrowed capital (i.e. debentures, loans, Public Deposits etc)

Explanation of Solution

A firm can raise its capital by debt or equity.
It is not necessary that proportion of debt and equity is equal in the capital structure.

Conclusion

Therefore, the debt and equity (long-term capital sources) constitute the firm’s capital structure.

Answer 6

Chapter 16, Problem 1CC

Summary Introduction

Capital structure: It refers to that structure which shows the combination of arranged funds from different sources of finance such as equity and debt.

To Explain: The components of the firm’s capital structure.

Expert Solution & Answer

Answer to Problem 1CC

Solution:

The components which constitute the firm’s capital structure are mentioned below:

The all long-term sources of capital constitute the capital structure.
Few examples of long-term debt are common stock and preferred stock.
To decide capital structure means to decide upon the ratio of owned capital (i.e. equity share capital, preference share capital, reserves & surplus) to borrowed capital (i.e. debentures, loans, Public Deposits etc)

Explanation of Solution

A firm can raise its capital by debt or equity.
It is not necessary that proportion of debt and equity is equal in the capital structure.

Conclusion

Therefore, the debt and equity (long-term capital sources) constitute the firm’s capital structure.

Answer 7

Chapter 16, Problem 1CC

Summary Introduction

Capital structure: It refers to that structure which shows the combination of arranged funds from different sources of finance such as equity and debt.

To Explain: The components of the firm’s capital structure.

Answer 8

Expert Solution & Answer

Answer to Problem 1CC

Solution:

The components which constitute the firm’s capital structure are mentioned below:

The all long-term sources of capital constitute the capital structure.
Few examples of long-term debt are common stock and preferred stock.
To decide capital structure means to decide upon the ratio of owned capital (i.e. equity share capital, preference share capital, reserves & surplus) to borrowed capital (i.e. debentures, loans, Public Deposits etc)

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

A firm can raise its capital by debt or equity.
It is not necessary that proportion of debt and equity is equal in the capital structure.

Answer 12

Conclusion

Therefore, the debt and equity (long-term capital sources) constitute the firm’s capital structure.

Answer 13

Ch. 16 - Prob. 1CC Ch. 16 - Prob. 2CC Ch. 16 - Prob. 3CC Ch. 16 - Prob. 4CC Ch. 16 - Prob. 5CC Ch. 16 - Prob. 6CC Ch. 16 - Prob. 7CC Ch. 16 - Prob. 8CC Ch. 16 - Prob. 9CC Ch. 16 - Prob. 10CC

Capital structure: It refers to that structure which shows the combination of arranged funds from different sources of finance such as equity and debt. To Explain : The components of the firm’s capital structure.

Concept explainers

Videos

Capital structure: It refers to that structure which shows the combination of arranged funds from different sources of finance such as equity and debt.

To Explain: The components of the firm’s capital structure.

Answer to Problem 1CC

Explanation of Solution

Want to see more full solutions like this?

Chapter 16 Solutions

Capital structure: It refers to that structure which shows the combination of arranged funds from different sources of finance such as equity and debt. To Explain : The components of the firm’s capital structure.

Concept explainers

Videos

Capital structure: It refers to that structure which shows the combination of arranged funds from different sources of finance such as equity and debt. To Explain: The components of the firm’s capital structure.

Answer to Problem 1CC

Explanation of Solution

Want to see more full solutions like this?

Chapter 16 Solutions

Capital structure: It refers to that structure which shows the combination of arranged funds from different sources of finance such as equity and debt.

To Explain: The components of the firm’s capital structure.