Question

The term capital structure represents proportionate relationship between

A Authorised capital and paid up capital Correct Answer Incorrect Answer
B Paid up capital and issued capital Correct Answer Incorrect Answer
C Debt capital and equity capital Correct Answer Incorrect Answer
D Assets and liabilities Correct Answer Incorrect Answer
E Capital and profit Correct Answer Incorrect Answer

Solution

While capital structure relates to the total capital raised by the company, analysing capital structure relates to understanding the proportion of own capital (equity) and borrowed capital (debt capital).

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