Capital Structure: What It Is and How to Calculate It
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Capital Structure: What It Is and How to Calculate It
How is a company financed—through debt or equity? 💡📊 Capital structure ratios hold the answer! For example, Walmart is 36% debt-financed and 64% equity-financed, while General Motors leans more on debt at 60%. Here’s what you need to know: Debt: Cost-effective but adds financial risk. Equity: Dilutes ownership but offers flexibility ...
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