Question:
Capital Structure refers to the mix between owners and borrowed funds. Which of the following is the correct formula?
Capital Structure refers to the mix between owners and borrowed funds. Which of the following is the correct formula?
Show Hint
Remember, Capital Structure = Debt/Equity is the key formula for understanding how a company is financed.
Updated On: Apr 24, 2025
- Debt/Equity
- Equity/Debt
- Debt - Equity
- Debt * Equity
Hide Solution
Verified By Collegedunia
The Correct Option is A
Solution and Explanation
The Capital Structure of a company is determined by the proportion of debt and equity financing. The correct formula to calculate the capital structure is Debt/Equity, which indicates the ratio of borrowed funds (debt) to the funds contributed by the owners (equity).
Was this answer helpful?
0
0
Questions Asked in CUET exam
- In the circuit shown below, a current 3 I enters at A. The semicircular parts ABC and ADC have equal radii r but resistances 2R and R respectively. The magnetic field at the center of the circular loop ABCD is ______.
Fill in the blank with the correct answer from the options given below- CUET (UG) - 2024
- Magnetic Effects of Current and Magnetism
- The present age of Harish is 8 times the sum of the ages of his two sons. After 8 years, his age will be twice the sum of the ages of his two sons. The present age of Harish (in years) is:
- CUET (UG) - 2024
- Statements and Inferences
- If the value of the investment multiplier is 5, and the increased income is ₹800 crore, find the change in investment.
- CUET (UG) - 2024
- Return on investment
- Two resistances of 100 \(\Omega\) and 200 \(\Omega\) are connected in series across a 20 V battery as shown in the figure below. The reading in a 200 \(\Omega\) voltmeter connected across the 200 \(\Omega\) esistance is _______.
Fill in the blank with the correct answer from the options given below- CUET (UG) - 2024
- Current electricity
- Two charged particles, placed at a distance d apart in vacuum, exert a force F on each other. Now, each of the charges is doubled. To keep the force unchanged, the distance between the charges should be changed to_____
Fill in the blank with the correct answer from the options given below.- CUET (UG) - 2024
- Electrostatics
View More Questions