© ae Capral ctrucknre *8 the Mays A corporation finances is Meet NC ourk a Combin cetion of debt, equity ond Securities . Mh sim ple enample, if & companys asseds(tori Come Frorn equity iSsvan oe of AED 2 million ond AED EMiMon — Feom loan, the capital stueore can be Saidto be Doz equtly and Bor dobt. Eguity comes From selling of ownership shares While debt ts he lending of money ig., leverage. Thus, tha 2 candide vations involved fn clecitling the Capital Struetre of the company Ps tha. owners fund Ceguity) and -tha borrowers fond (debt), The share capivel and wehined easnings confide tha owners ford while Loan , bonds debendureg Consttude bowrowers fond. Tae i's no visK involved 1 dhe owners fords however, tha borrowers ford nas to be wepad and showfor, Hoe cw visks attocrattd with ik.© The factors arfpcking tha Strocegic Pos Iion of dha Corian oun as follows t- (9) Companies having Steady cashflews Can affesd bownewing securits while companies wtdh poor CabhHows must profes owner's equity, (b) Wh levesag?, the assumption ts that tha fe CoM eax more on tha bovrourdl foots Han what it would Pay io intevert and cosie on dhase fonds. Hewever, do Cassy high debs Succecefulty, firms Must maindan a Selid record of sant wordy 14 bovvowing commidments, (e) A com pany with doo muck levenage/debt com pared to equidy Dues find rds cxedétors westioting 14 fseodom Of action. Also, it can fe reduced Propitebit due fo incseased inde yest, (A) Te stage of capitl masked also has an affect en de shadegie ond financrad dea'sars. Ih boom Pericd, Wis easy 40 coll equsdy shasta while in secession, peste SHa64S jovesting in bonds aiid debenture.