Capital Structure Solution

STEP 0: Pre-Calculation Summary
Formula Used
Capital Structure = Common Equity Weight+Debt Weight+Preferred Stock Weight
CS = CEW+DW+PSW
This formula uses 4 Variables
Variables Used
Capital Structure - Capital Structure refers to the mix of a company's sources of funding, both equity and debt, used to finance its overall operations and growth.
Common Equity Weight - Common Equity Weight represents the proportion of a company's capital structure that is financed through common equity.
Debt Weight - Debt Weight represents the proportion of a company's capital structure that is financed through debt.
Preferred Stock Weight - Preferred Stock Weight represents the proportion of a company's capital structure that is financed through preferred stock.
STEP 1: Convert Input(s) to Base Unit
Common Equity Weight: 0.25 --> No Conversion Required
Debt Weight: 0.35 --> No Conversion Required
Preferred Stock Weight: 0.55 --> No Conversion Required
STEP 2: Evaluate Formula
Substituting Input Values in Formula
CS = CEW+DW+PSW --> 0.25+0.35+0.55
Evaluating ... ...
CS = 1.15
STEP 3: Convert Result to Output's Unit
1.15 --> No Conversion Required
FINAL ANSWER
1.15 <-- Capital Structure
(Calculation completed in 00.004 seconds)

Credits

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Created by Vishnu K
BMS College of Engineering (BMSCE), Bangalore
Vishnu K has created this Calculator and 200+ more calculators!
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Verified by Aashna
IGNOU (IGNOU), India
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Capital Structure Formula

​LaTeX ​Go
Capital Structure = Common Equity Weight+Debt Weight+Preferred Stock Weight
CS = CEW+DW+PSW

What is Capital Structure?

Capital structure refers to the mix of a company's sources of funding, both equity and debt, used to finance its overall operations and growth. It represents how a company chooses to raise capital to invest in its business activities, make acquisitions, or fund other strategic initiatives. A company's capital structure is a crucial aspect of its financial management and can have significant implications for its risk profile, cost of capital, and overall financial health.
The two primary components of capital structure are:
Equity: Equity represents the ownership interest in the company held by its shareholders. It is raised through the issuance of shares or retained earnings. Equity holders are entitled to a share of the company's profits, usually in the form of dividends, and have voting rights in corporate decisions.
Debt: Debt refers to the borrowed funds that a company raises by issuing bonds, loans, or other debt instruments.

How to Calculate Capital Structure?

Capital Structure calculator uses Capital Structure = Common Equity Weight+Debt Weight+Preferred Stock Weight to calculate the Capital Structure, The Capital Structure is the mixture of debt, preferred stock, and common equity used by a company to fund its operations and purchase assets. Capital Structure is denoted by CS symbol.

How to calculate Capital Structure using this online calculator? To use this online calculator for Capital Structure, enter Common Equity Weight (CEW), Debt Weight (DW) & Preferred Stock Weight (PSW) and hit the calculate button. Here is how the Capital Structure calculation can be explained with given input values -> 1.15 = 0.25+0.35+0.55.

FAQ

What is Capital Structure?
The Capital Structure is the mixture of debt, preferred stock, and common equity used by a company to fund its operations and purchase assets and is represented as CS = CEW+DW+PSW or Capital Structure = Common Equity Weight+Debt Weight+Preferred Stock Weight. Common Equity Weight represents the proportion of a company's capital structure that is financed through common equity, Debt Weight represents the proportion of a company's capital structure that is financed through debt & Preferred Stock Weight represents the proportion of a company's capital structure that is financed through preferred stock.
How to calculate Capital Structure?
The Capital Structure is the mixture of debt, preferred stock, and common equity used by a company to fund its operations and purchase assets is calculated using Capital Structure = Common Equity Weight+Debt Weight+Preferred Stock Weight. To calculate Capital Structure, you need Common Equity Weight (CEW), Debt Weight (DW) & Preferred Stock Weight (PSW). With our tool, you need to enter the respective value for Common Equity Weight, Debt Weight & Preferred Stock Weight and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.
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