Practicing Success
Capital structure of an enterprise shows which of the following? |
Debtor-creditor ratio. Fixed assets-current assets ratio. Interest coverage ratio. Debt-equity ratio. |
Debt-equity ratio. |
Capital structure refers to the mix between owners and borrowed funds. These are referred as equity and debt . It can be calculated as debt-equity ratio i.e Debt/Equity or as the proportion of debt out of the total capital i.e.,Debt / (Debt+Equity) |