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Long-Term Capital Structure's purpose for any company is to put the firm at the best position between borrowing money and getting it from investors. at any point in time, a company can raise cash from the market either by borrowing or selling shares. the long term CS aims to maximize the effect of each of the two types so that the company gets cash for the best possible price, maintains a good credit rating and avoids extreme or unnecessary risks. (note that LTCS varies between industries)

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Is venture capital long or short term?

Venture capital is long term.


What does capital structure mean?

Capital structure refers to the ways on how a firm finances its overall operations and growth. It includes long-term debt, common and preferred stocks as well as retained earnings.


What is the difference between capital budgeting decisions and capital structure decisions?

Capital budgeting is related with the investments decisions which has to be made in long-term fixed assets and working capital management. Capital structure is related with the financing decisions regarding the debt and equity combinations,in which proportion debt and equity has to be maintained.


What is difference between the capital budgeting decision and capital structure decision?

Capital budgeting is related with the investments decisions which has to be made in long-term fixed assets and working capital management. Capital structure is related with the financing decisions regarding the debt and equity combinations,in which proportion debt and equity has to be maintained.


What is the difference between long term capital gain and short term capital gain?

The main difference between long-term capital gains and short-term capital gains is the length of time an asset is held before it is sold. Long-term capital gains are from assets held for more than one year, while short-term capital gains are from assets held for one year or less. The tax rates for long-term capital gains are typically lower than those for short-term capital gains.

Related Questions

Difference between Capital Structure and Financial 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.


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.


The process of planning and managing a firms long-term investments is called?

Capital Structure Managemnet


What is meant by a flexible capital structure?

Capital structure which keeps room for expansion or reduction of capital is called as flexibile capital structure. Exapnsion is easy. Shares and redeemable debentures can be used as securities for raising the finance.so that in future the capital can be reduced. A mix of a company's long-term debt, specific short-term debt, common equity and preferred equity. The capital structure is how a firm finances its overall operations and growth by using different sources of funds. Debt comes in the form of bond issues or long-term notes payable, while equity is classified as common stock, preferred stock or retained earnings. Short-term debt such as working capital requirements is also considered to be part of the capital structure.


Is venture capital long or short term?

Venture capital is long term.


What does capital structure mean?

Capital structure refers to the ways on how a firm finances its overall operations and growth. It includes long-term debt, common and preferred stocks as well as retained earnings.


When was Long-Term Capital Management created?

Long-Term Capital Management was created in 1994.


When did Long-Term Capital Management end?

Long-Term Capital Management ended in 2000.


What is the difference between capital budgeting decisions and capital structure decisions?

Capital budgeting is related with the investments decisions which has to be made in long-term fixed assets and working capital management. Capital structure is related with the financing decisions regarding the debt and equity combinations,in which proportion debt and equity has to be maintained.


What is difference between the capital budgeting decision and capital structure decision?

Capital budgeting is related with the investments decisions which has to be made in long-term fixed assets and working capital management. Capital structure is related with the financing decisions regarding the debt and equity combinations,in which proportion debt and equity has to be maintained.


how do you report long term capital gains?

how do you report long term capital gains and what rate are they taxed


Can you use long-term capital loss to offset short-term capital gains?

can long term gains be offset by short term losses