Capital structure and firm value (13 slides)

Abstract

Capitalization is a quantitative aspect of financial planning of an enterprise, which refers to the total amount of securities issued by a company. Capital Structure is concerned with the qualitative aspect, which refers to the kinds of securities and the proportionate amounts that make up capitalization. A decision about the proportion among these type of securities refers to the capital structure of an enterprise. Financial Structure means the entire liabilities side of the balance sheet , Which refers to all financial resources marshaled by the firm, short as well as long-term ,and all forms. The term ‘Capital Structure' refers to the relationship between the various long-term forms of financing such as debentures, preference share capital and equity share capital.