The Modigliani-Miller theorem states that a company’s capital structure doesn’t affect its value in perfect markets. While ...

Capital structure is also referred to as capitalization or capitalization structure. When it is expressed as a formula, capital structure equals debt obligations plus total shareholders' equity ...

Any debt capital is offset by a debt liability on the balance sheet. The capital structure of a company determines what mix of these types of capital it uses to fund its business. Economists look ...

"The formula uses the cost of each of the sources ... in order to break even on the funds it borrows. A company's capital structure is its combination of equity and debt. For example, if a company ...

The amount of debt and equity that makes up a company’s capital structure has many risk and return implications. Therefore, corporate management must use a thorough and prudent process for ...