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The firm's target capital structure weight for common stock is 28.57
Capital structure refers back to the precise mix of debt and fairness used to finance a company's assets and operations. From a company perspective, equity represents a more expensive, everlasting supply of capital with extra financial flexibility.
this combination of debts and equities makes up the budget used for a commercial enterprise's operations and increases. for instance, the capital structure of a company is probably forty% lengthy-term debt (bonds), 10% preferred stock, and 50% common stock. The capital shape of a business firm is basically the right side of its stability sheet.
Capital structure in corporate finance is the mixture of various forms of outside budget, called capital, used to finance a business. It consists of shareholders' equity, debt, and desired stock, and is designated in the enterprise's stability sheet.
S/(S+B)= 1/3.5.
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