Fundamental Accounting Principles
Fundamental Accounting Principles
23rd Edition
ISBN: 9781259536359
Author: John J Wild, Ken Shaw Accounting Professor, Barbara Chiappetta Fundamental Accounting Principles
Publisher: McGraw-Hill Education
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Chapter 17, Problem 9DQ
To determine

Capital Structure:

Capital structure is the combination of borrowed funds and owned funds employed in financing the operation and growth of a business. Debt instruments like bonds, notes payable are some typical example of borrowed funds and securities like common stock, preferred share and retained earnings are some of the example of owned funds.

To determine:

Why is a company’s capital structure, as measured by debt and equity ratios, important to financial statement analysts?

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Chapter 17 Solutions

Fundamental Accounting Principles

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