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preferred equity. The capital structure is how a firm finances its overall oper
ations and growth by using different sources of funds.
there are three structures followed by the companies
1.Maturity matching policy - Current liabilities only can finance by the amount
of temporary current assets.
low risk
2. Aggressive policy - Current liabilities can finance by the amount of temporar
y current assets and permanent current assets. too risky
3. Conservative approach - Current liabilities only can finance by the a part of
amount of temporary current assets. it means temporary current assets> current
liabilities.
the more safest mode to financing.