How do you calculate Capital Structure-

Question

Toppr Admin · Accepted Answer

Capital Structure 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- Here- Debt - total outside liabilities of the business- and Equity - total shareholders- funds-

How do you calculate Capital Structure?

Capital Structure 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). Here, Debt = total outside liabilities of the business, and Equity = total shareholders' funds.