Capital Structure: Meaning and Types (Horizontal, Vertical, Pyramid, Inverted) Management

NTA NET Management: https://www.doorsteptutor.com/Exams/UGC/Management/

NTA NET Labor Welfare: https://www.doorsteptutor.com/Exams/UGC/Labor-Welfare/

CA: https://www.doorsteptutor.com/Exams/CA/

IAS Mains Management Optional
https://www.doorsteptutor.com/Exams/IAS/Mains/Management/
NTA NET Paper 1 Online Crash Course - https://www.doorsteptutor.com/Exams/UGC/Paper-1/Online-Crash-Course/

NTA NET Paper 1 Mock papers - https://www.doorsteptutor.com/Exams/UGC/Paper-1/Online-Test-Series/

NTA NET Paper 1 Practice questions - https://www.doorsteptutor.com/Exams/UGC/Paper-1/Questions/

NTA NET Paper 1 Postal Course - https://www.examrace.com/NTA-UGC-NET/NTA-UGC-NET-FlexiPrep-Program/Postal-Courses/Examrace-NTA-UGC-NET-Paper-I-Series.htm

NCERT, Yojana, Kurukshetra, Down to Earth, Science, Social Studies and More interesting topics subscribe at Examrace: https://www.youtube.com/c/Examrace

NCERT, Yojana, Kurukshetra, Down to Earth, Science, Social Studies and More interesting topics subscribe at ExamraceHindi: https://www.youtube.com/c/ExamraceHindi

For classes nursery to class 5 videos subscribe to FunProf: https://www.youtube.com/c/FunProf

For Science Class 11-12 and important topics subscribe to DoorStepTutor: https://www.youtube.com/c/DoorstepTutor

TYPES OF CAPITAL STRUCTURE
HORIZONTAL CAPITAL STRUCTURE: In this structure, company has zero debt and 100% equity.

VERTICAL CAPITAL: In this the structure is formed by small equity share capital. More portion is of debt.

PYRAMID CAPITAL STRUCTURE: Here the portion of equity share capital and retained earning is huge.

INVERTED PYRAMID STRUCTURE: Here the amount of equity share capital and retained earnings is very small meaning huge amount of debt.
It is the structure in which the composite or weighted average cost of capital is minimum and therefore the value of the firm is maximum.

Weighted average cost of capital is the combination of all the rate of interest of various sources of finance.
Capital structure does not include?

Equity shares
Preference shares
Debentures
Commercial papers
Optimum capital structure is?

Combined cost of various sources is maximum
Combined cost of various sources is minimum
Share capital is maximum
Debt is minimum

CHAPTER
00:00 Capital Structure Meaning And Types
00:10 Meaning
01:31 Types Of Capital Structure
03:16 Optimum Capital Structure
04:41 Summary
07:56 Lets Practice

#CapitalStructureMeaningAndTypes#Meaning#TypesOfCapitalStructure#OptimumCapitalStructure#Summary#LetsPractice#Testprep#