Those critiquing the capital structure can compare the debt to capitalization and debt to equity ratios to companies in the same industry to determine if the ratios are high or low.

A debt-to-equity ratio is a way to measure a company's financial position. What does the ratio tell us? And how do investors ...

Theoretical Frameworks Shaping Capital Structure Decisions Given the criticality of the financing decision and its impact, several theories attempt to explain how firms choose their capital ...

Since capital is expensive for small businesses, it is particularly important for small business owners to determine a target capital structure for their firms.

Learn what Weighted Average Cost of Capital (WACC) is, how to calculate it, and its significance in evaluating investment opportunities.

Exactly how much net working capital a healthy company should maintain will vary from company to company, dictated by its operating model, industry, and capital structure.

Our large-scale empirical analyses provide supportive evidence for the proposition that competitive environments moderate the relationship between capital structure and economic performance. From a ...

In a spin‐off, the parent divides the assets of the firm and chooses the capital structure for the new, stand‐alone entity. I therefore use this sample to investigate how firms determine their capital ...