What is capital structure ? State the various factors responsible for deciding the capital structure of a company.

Capital Structure refers to the mix of different sources of funds a company uses to finance its operations and investments. It represents the combination of debt and equity that a company employs to meet its financial needs. Deciding the optimal capital structure is crucial for a company's financial health and long-term success, as it can impact its risk profile, cost of capital, and overall value.

Various factors influence the decision regarding a company's capital structure. These factors can be broadly categorized into internal and external factors. Let's explore these factors in detail:

Internal Factors:

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