Sean Ross is a strategic adviser at 1031x.com, Investopedia contributor, and the founder and manager of Free Lances Ltd. Gordon Scott has been an active investor and technical analyst or 20+ years. He ...

The capital structure of a company directly impacts its profitability and ability to continue as a going concern. If a company is over-leveraged and cash flows are insufficient to meet recurring debt ...

Capital structure theories seek to explain why businesses choose different mixes of debt and equity to finance their operations. Banking firms represent a special case because of certain unique ...

Capital structure refers to the mix of funding sources a company uses to finance its assets and its operations. The sources typically can be bucketed into equity and debt. Using internally generated ...

Dr. JeFreda R. Brown is a financial consultant, Certified Financial Education Instructor, and researcher who has assisted thousands of clients over a more than two-decade career. She is the CEO of ...

To continue reading this content, please enable JavaScript in your browser settings and refresh this page. Maintaining the right mix of debt and equity to finance the ...

Fruhan, William E., Jr. "Note on the Theory of Optimal Capital Structure TN." Harvard Business School Teaching Note 292-047, January 1992.

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