In today’s dynamic and uncertain business landscape, corporate leaders need to adopt sound and robust strategies to optimize their capital structure. Effective capital structure optimization strategies help to minimize costs, reduce risks, and increase value for shareholders. Here, we examine some of these strategies and the best way they can be harnessed to improve business performance.
Understanding Capital Structure
Capital structure refers to the way a corporation finances its overall operations and growth through different sources of funds. Equity capital (funds received in exchange for shares of ownership) and debt capital (funds borrowed and to be repaid with interest) are the two main sources of financing.…
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