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I want to know what the capital structure is of Smuckers (SMJ). THe most recent information

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I want to know what the capital structure is of Smuckers (SMJ). THe most recent information
Answered Same Day Dec 22, 2021

Solution

David answered on Dec 22 2021
131 Votes
Capital Structure
Capital structure can be defined as the mix of long term debt, short term debt, common stock and
prefe
ed equity. It shows how the company finances its overall operations and growth by using
various sources of funds. The debt is issued in the form of bonds, long term notes payable while
equity is common stock, prefe
ed stock or retained earnings. The working capital requirements
are classified as short debt and are also considered as part of the capital structure of the firm.
Generally the debt equity ratio is evaluated by the investors and this provides detail about the
iskiness of the company. The firm which is financed by debt ca
ies high risk.
Capital Structure refers to the predefined mix of long term debt and equity that is used by the
company to finance its business i.e. operations. The financial structure directly affects the risk
associated with the business and the value of the business. The main objective of business is to
maximize its value i.e. market capitalization and minimizes the risk of the company. This can be
done by using the appropriate mix of debt and equity in financial structure. The financial
manager of every company is concerned with deciding the bo
owings for the company and the
est mixture of debt...
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