What is capital structure how do the capital structures of, Finance Basics

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What is capital structure how do the capital structures of

Question: 1. What is capital structure? How do the capital structures of Ford and Microsoft differ?

2. Why would a company choose to borrow money rather than issue additional stock?

3. What are bond issue costs? What is an underwriter?

4. Why do some companies issue bonds rather than borrow money directly from a bank?

5. Contrast the following types of bonds:

a. Secured and unsecured.

b. Term and serial.

c. Callable and convertible.

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