Question
What is meant by ‘Capital Structure’?

Answer

Capital structure refers to the mix between owners and borrowed funds. These shall be referred as equity and debt in the subsequent text.
It can be calculated as debt-equity ratio $\Big[\frac{\text{debt}}{\text{equity}}\Big]$
or as the proportion of debt out of total capital $\Big[\frac{\text{debt}}{\text{debt-equtiy}}\Big]$

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