Define capital structure?

Capital structure is a term that describes the components of the financing of a business. A company financed entirely by equity is referred to as ungeared company. If the financing contains a mix of debt and equity, it is described as geared(leveraged) capital structure.

its the firm's various sources of funds that which a firm chooses/selects to minimize overall cost of capital for the firm

capital structure is basically all the long term and short term debts. it also includes the common equity as well as preferred equity.it is concerned with that how the firm/company divide its cashflows among the the different components to raise capital.

Capital Structure Includes the following:

1. Long Term Debts
2. Paid in Capital
3. Retained earnings
4. Reserves
5. Revaluation surplus