Capital structure refers to the balance between a company's assets and liabilities, the nature of its assets, and the composition of its borrowings. It is also commonly used in the context of a company's debt-equity ratio and the mix of debt classes in structured finance instruments.
A financial ratio illustrating the proportional relationship between a company's debt and its equity, reflecting its financial leverage and risk.
Financial gearing, also referred to as leverage, is the degree to which a company utilizes borrowed money or debt to finance its operations and growth.
Understanding the calculation and implication of WACC in managing a company's capital structure and assessing project feasibility.
