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Gre4nikov [31]
2 years ago
8

Match the factors to the target capital structure preferred.

Business
1 answer:
Paraphin [41]2 years ago
7 0

Answer:

See below ~

Explanation:

<u>Equity Capital Structure</u>

Equity capital refers to the money owed by the owners or shareholders of the company.

  • Fast growing companies like software
  • Businesses in the growth stage
  • Companies with high growth rate or credibility
  • Companies not in a position to provide collateral

<u>Debt Capital Structure</u>

Debt capital in the capital structure of the company refers to the borrowed money at work.

  • Managers with conservative management style
  • Companies want to show high credit rating
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