A Study of Capital Structure of a Firm

The strength of a company’s balance sheet can be evaluated by three broad categories of investment-quality measurements; working capital adequacy, asset performance and capital structure. The capital structure is how a firm finances its overall operations and growth by using different sources of fund. For stock investors a strong balance sheet is an important consideration for investing in a company’s stock. The study tells about the capital structure of a firm. The term capital structure refers to the relationship between the various long terms sources financing such as equity capital, preference capital and debt capital. During the study theoretical approach (Net income approach and net operating approach) is used to find out firms value