answersLogoWhite

0

capitalization means amount of capital invested in a business.it is used in the case of companies only.it include all the sources of fund used in an organization.

capital structure is a qualitative term that gives the ratio in which the total capital is contributed by different sources.it may be high geared or low geared and influenced by external factors.

User Avatar

Wiki User

12y ago

What else can I help you with?

Continue Learning about Finance

What is current market capitalization and base market capitalization?

current market capitalization may refer to the the value that you see today is the sum of the free float market capital of the thirty companies relative to the base market capital. base market capitalization refers to The value of a set of securities at a particular time. The base market value of a set of securities is used to determine the value of an index.


What is capital structure decisions?

capital structure decisions are structure with decisions


What are the elements of capital structure?

elements of capital structure


What is the difference between optimal capital structure and target capital structure?

optimal capital structure means using the resources of capital optimally, at is where they can utilised properly. target capital structure means investment made in the certain project so that they can utilise the resource of capital properly.


How Issue of bonus shares affects the total capital structure of the company?

The issuance of bonus shares generally does not affect the total capital structure of a company in terms of total equity, as it redistributes retained earnings into issued share capital without raising new funds. However, it increases the number of shares outstanding, which can dilute earnings per share (EPS) and potentially influence market perceptions. Additionally, the market capitalization may adjust as investors react to the change in share structure. Overall, while the total capital remains unchanged, the composition and market perception of the equity can shift.

Related Questions

Difference between capitalization and capital structure?

Capital Structure vs Financial Structure• Capital structure of a company is long term financing which includes long term debt, common stock and preferred stock and retained earnings.• Financial structure on the other hands also includes short term debt and Accounts Payable.• Capital structure is thus a subset of financial structure of a company.


What is the correct capitalization in this sentence - The board members met on Thursday?

Capital T on The and a Capital T on Thursday


Which is change of capitalization on the questions of cars in wiki answers?

Capitalization means using capital, or upper-case, letters.


Do you capitalize the word capital workorders?

No there's no need for capitalization.


What are the uses of capitalization?

you use capitalization at the beginning of sentences, the letter I, proper nouns, titles, and names.


Difference between over capitalization and under capitalization?

Overcapitalization A company is said to be overcapitalized, when its total capital (both equity and debt) exceeds the true value of its assets. It is wrong to identify overcapitalization with exess of capital because most of the overcapitalized firms suffer from the problems of liquidity. Undercapitalization Under-capitalization is just the reverse of over-capitalization. A company is considered to be under-capitalized when its actual capitalization is lower than its proper capitalization as warranted by its earning capacity.


Difference between over capitalization and under capitalisation?

OvercapitalizationA company is said to be overcapitalized, when its total capital (both equity and debt) exceeds the true value of its assets. It is wrong to identify overcapitalization with exess of capital because most of the overcapitalized firms suffer from the problems of liquidity.UndercapitalizationUnder-capitalization is just the reverse of over-capitalization. A company is considered to be under-capitalized when its actual capitalization is lower than its proper capitalization as warranted by its earning capacity.


What is current market capitalization and base market capitalization?

current market capitalization may refer to the the value that you see today is the sum of the free float market capital of the thirty companies relative to the base market capital. base market capitalization refers to The value of a set of securities at a particular time. The base market value of a set of securities is used to determine the value of an index.


When checking capitalization what is one of the things to check for?

The first letter of a sentence must be capital.


Does facebook use a capital f?

Yes, the correct capitalization for the social media platform is "Facebook" with a capital "F" at the beginning.


What is capital structure decisions?

capital structure decisions are structure with decisions


What is the objectives of capital structure?

The objective of capital structure is minimize the WACC cost.