From the following financing sources, identify the companys financial structure and capital structure and calculate the proportion

Question:

From the following financing sources, identify the company’s financial structure and capital structure and calculate the proportion or weight of each.

Sources Amounts

Retained earnings ……………………….. $450,000

Share capital …………………………….. 300,000

Trade and other payables ……………….. 300,000

Long-term borrowings ………………….. 900,000

Working capital loan …………………… 70,000

Short-term borrowings …………………. 200,000

Capital Structure
Capital structure refers to a company’s outstanding debt and equity. The capital structure is the particular combination of debt and equity used by a finance its overall operations and growth. Capital structure maximizes the market value of a...