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Finance · Corporate Finance

Capital Structure

Noun
US US /ˈkæpɪtl ˈstrʌktʃə/ GB UK /ˈkæpɪtl ˈstrʌktʃə/
Finance Corporate Finance intermediate

Definition

The mix of debt and equity a company uses to finance its operations.

Visual Reference

Capital Structure illustration

Detailed Explanation

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Example

CFOs rely on Capital Structure when structuring capital and planning corporate strategy.

In Practice

Also known as: Financing Mix. Closely related to WACC, Leverage.

Video Explanation

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Case Study

Capital Structure - key concept in Corporate Finance.

Word Usage

Corporate finance; Banking; Investment decisions

Finance Corporate Finance

Use Case

Applied in Corporate Finance contexts: Corporate finance; Banking

Also Known As

corporate-finance

Synonyms

Financing Mix

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