Define the idea of capital structure and capital components


Define the idea of capital structure and capital components. Why is capital structure important to the cost of capital concept? In many capital structure discussions, preferred stock is lumped in with either debt or common equity. With respect to the cost of capital, however, its treated separately, why?

Solution Preview :

Prepared by a verified Expert
Finance Basics: Define the idea of capital structure and capital components
Reference No:- TGS01467241

Now Priced at $20 (50% Discount)

Recommended (99%)

Rated (4.3/5)