What Is Capital Structure? Why Would a Company Choose to Borrow

question 64

Essay

What is capital structure? Why would a company choose to borrow money rather than issue additional stock?

---

Definitions:

Detail

An individual feature, fact, or item, especially one that is considered to be intricate or significant.

Positive Message

Communication that conveys good news or a favorable outcome, often intended to motivate or affirm.

Informative Message

A communication that provides data, facts, updates, or feedback without an explicit intention to persuade.

Negative Elements

Components of communication or situations that carry a negative connotation or impact.