What is Capital Structure ?
Capital Structure is the way companies finance their assets. The funds can originate from only equity, or only debt, or a combination of the two.
How to manage a capital structure ?
1. Clearly define all the company's debts including whether it's a long-term or short term debt payment. Debt comes in the form of bond issues, long-term notes payable.
A capital structure is defined as a mix of a company's long-term debt, short term debt, common equity and preferred equity. A company must know how to successfully manage a capital structure to have a clear definition of its debt to equity ratio. The financial records of all of the company's transaction must be monitored and maintained in an efficient account management system. Overall, the capital structure is the basis for understanding the impact of the initial investments and expenses of a particular company's business.
How to Calculate Capital Structure ?
Capital structure refers to the sources of your company's financing.Some of the money that keeps your business afloat may have come from loans from the bank, some may have come from equity investors who own a piece of the business and some capital structure of your business in the first step in determining the cost to the company of that capital and being able to minimize that cost.
What is Authorized share capital ?
The maximum value of security's that a company can legally issue. This number is specified in the memorandum of association (or articles of incorporation in the US) when a company is incorporated, but can be changed later with shareholder's approval. Authorized share capital may be divided into (1) Issued Capital : par value of the shares actually issued. (2) Paid up capital : money received from the shareholders in exchange for shares.(3) Uncalled capital : money remaining unpaid by the shareholders for the shares they have bought. Also called authorized capital, authorized stock, nominal capital, or registered capital.
Definition of "Authorized Share Capital"
The number of stock units that a publicly traded company can issue as stated in its articles of Incorporation, or as agreed upon by shareholder vote. Authorized share capital is often not fully used by management in order to leave room for future issuance of additional stock in case the company needs to raise capital quickly. Another reason to keep shares shares in the company treasury is to retain a controlling interest in the Company.
Also be called " Authorized Stock ", "Authorized Shares" or " Authorized Capital Stock".
Capital Structure is the way companies finance their assets. The funds can originate from only equity, or only debt, or a combination of the two.
How to manage a capital structure ?
1. Clearly define all the company's debts including whether it's a long-term or short term debt payment. Debt comes in the form of bond issues, long-term notes payable.
A capital structure is defined as a mix of a company's long-term debt, short term debt, common equity and preferred equity. A company must know how to successfully manage a capital structure to have a clear definition of its debt to equity ratio. The financial records of all of the company's transaction must be monitored and maintained in an efficient account management system. Overall, the capital structure is the basis for understanding the impact of the initial investments and expenses of a particular company's business.
How to Calculate Capital Structure ?
Capital structure refers to the sources of your company's financing.Some of the money that keeps your business afloat may have come from loans from the bank, some may have come from equity investors who own a piece of the business and some capital structure of your business in the first step in determining the cost to the company of that capital and being able to minimize that cost.
What is Authorized share capital ?
The maximum value of security's that a company can legally issue. This number is specified in the memorandum of association (or articles of incorporation in the US) when a company is incorporated, but can be changed later with shareholder's approval. Authorized share capital may be divided into (1) Issued Capital : par value of the shares actually issued. (2) Paid up capital : money received from the shareholders in exchange for shares.(3) Uncalled capital : money remaining unpaid by the shareholders for the shares they have bought. Also called authorized capital, authorized stock, nominal capital, or registered capital.
Definition of "Authorized Share Capital"
The number of stock units that a publicly traded company can issue as stated in its articles of Incorporation, or as agreed upon by shareholder vote. Authorized share capital is often not fully used by management in order to leave room for future issuance of additional stock in case the company needs to raise capital quickly. Another reason to keep shares shares in the company treasury is to retain a controlling interest in the Company.
Also be called " Authorized Stock ", "Authorized Shares" or " Authorized Capital Stock".
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