Capital Structure Explained | With Examples

In this lesson, we explain what capital structure is, what optimal capital structure is, and financial risk. Using an example, we show how the capital structure affects profitability and Earnings Per Share (EPS). We go through different capital structures, the combination of debt and equity, and show the changes to profitability and earnings per share. We show interest expense (finance cost) in the income statement (Statement of Comprehensive Income) and net profit (Earnings after interest and tax) effects.

WACC Weighted Average Cost of Capital | Explained with Example: WACC Weighted Average Cost of Capital...

IRR (Internal Rate of Return) Explained with Example: IRR (Internal Rate of Return) Explain...

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