Capital Structure Definition, Types, Importance, and Examples

Capital structure is the specific mix of debt and equity used by a company to finance its operations and growth. Debt and equity can be found on a company's balance sheet, and the debt-to-equity (D/E) ratio provides insight into a company's borrowing practices and level of risk. Different industries use capital structures suited to their type of business, and managers, analysts, and investors use various metrics to evaluate a company's capital structure.
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