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 ...

Merton, Robert C. "A Dynamic General Equilibrium Model of the Asset Market and Its Application to the Pricing of the Capital Structure of the Firm." Sloan School of Management Working Paper, No.