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 ...

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 ...

Taking on more debt increases a company's risk of bankruptcy Reviewed by Julius Mansa Fact checked by David Rubin When companies can't pay their debts, they may have very limited options for their ...