Capital Structure Calculator

✖Common Equity Weight represents the proportion of a company's capital structure that is financed through common equity.ⓘ Common Equity Weight [CEW]			+10% -10%
✖Debt Weight represents the proportion of a company's capital structure that is financed through debt.ⓘ Debt Weight [DW]			+10% -10%
✖Preferred Stock Weight represents the proportion of a company's capital structure that is financed through preferred stock.ⓘ Preferred Stock Weight [PSW]			+10% -10%

✖Capital Structure refers to the mix of a company's sources of funding, both equity and debt, used to finance its overall operations and growth.ⓘ Capital Structure [CS]

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Formula

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Capital Structure

Formula

`"CS" = "CEW"+"DW"+"PSW"`

Example

`"1.15"="0.25"+"0.35"+"0.55"`

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Capital Structure Solution

STEP 0: Pre-Calculation Summary

Formula Used

Capital Structure = Common Equity Weight+Debt Weight+Preferred Stock Weight
CS = CEW+DW+PSW
This formula uses 4 Variables

Variables Used

Capital Structure - Capital Structure refers to the mix of a company's sources of funding, both equity and debt, used to finance its overall operations and growth.
Common Equity Weight - Common Equity Weight represents the proportion of a company's capital structure that is financed through common equity.
Debt Weight - Debt Weight represents the proportion of a company's capital structure that is financed through debt.
Preferred Stock Weight - Preferred Stock Weight represents the proportion of a company's capital structure that is financed through preferred stock.

STEP 1: Convert Input(s) to Base Unit

Common Equity Weight: 0.25 --> No Conversion Required
Debt Weight: 0.35 --> No Conversion Required
Preferred Stock Weight: 0.55 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

CS = CEW+DW+PSW --> 0.25+0.35+0.55

Evaluating ... ...

CS = 1.15

STEP 3: Convert Result to Output's Unit

1.15 --> No Conversion Required

FINAL ANSWER

1.15 <-- Capital Structure

(Calculation completed in 00.004 seconds)

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Credits

Created by Vishnu K

BMS College of Engineering (BMSCE), Bangalore

Vishnu K has created this Calculator and 200+ more calculators!

Verified by Aashna

IGNOU (IGNOU), India

Aashna has verified this Calculator and 10+ more calculators!

< 17 Asset Management Calculators

Seller's Discretionary Earnings

Go Seller Discretionary Earnings = Pre-Tax Income+Owner's Salary+Net Interest Expenses+Depreciation and Amortization+Discretionary Expenses+Non Recurring Expenses

Amortization of Intangible Assets

Go Amortization Expense = (Historical Cost of Intangible Asset-Residual Value)/Useful Life Assumption

Cash Available for Distribution

Go Cash Available for Distribution = Funds from Operations+Non-Recurring Items-Capital Expenditures

Residual Income

Go Residual Income = Operating Income-Minimum Required Rate of Return*Average Operating Assets

Net Capital Spending

Go Net Capital Spending = Ending Net Fixed Assets-Beginning Net Fixed Assets+Depreciation

Capital Structure

Go Capital Structure = Common Equity Weight+Debt Weight+Preferred Stock Weight

Allowance Method of Doubtful Accounts

Go Net Accounts Receivables = Gross Accounts Receivables-Allowance for Doubtful Accounts

Operating Working Capital

Go Operating Working Capital = Operating Current Assets-Operating Current Liabilities

Inventory Write-Down

Go Inventory Write Down = Historical Cost-Lower of Cost or Net Realizable Value

Net Realizable Value

Go Lower of Cost or Net Realizable Value = Expected Sale Price-Disposal Costs

Net Identifiable Assets

Go Net Identifiable Assets = Identifiable Assets-Total Liabilities

Expense Ratio

Go Expense Ratio = Annual Operating Expenses/Average Fund Assets

Inventory Days

Go Inventory Days = (Average Inventory/Cost Of Goods Sold)*365

Basic Earnings Power Ratio

Go Basic Earnings Power Ratio = Operating Income/Total Assets

Internal Growth Rate

Go Internal Growth Rate = Retention Ratio*Return on Assets

Depreciable Cost of Asset

Go Depreciable Cost = Purchase Cost-Salvage Value

Conversion Price

Go Conversion Price = Par Value/Conversion Ratio

Capital Structure Formula

Capital Structure = Common Equity Weight+Debt Weight+Preferred Stock Weight
CS = CEW+DW+PSW

What is Capital Structure?

Capital structure refers to the mix of a company's sources of funding, both equity and debt, used to finance its overall operations and growth. It represents how a company chooses to raise capital to invest in its business activities, make acquisitions, or fund other strategic initiatives. A company's capital structure is a crucial aspect of its financial management and can have significant implications for its risk profile, cost of capital, and overall financial health.
The two primary components of capital structure are:
Equity: Equity represents the ownership interest in the company held by its shareholders. It is raised through the issuance of shares or retained earnings. Equity holders are entitled to a share of the company's profits, usually in the form of dividends, and have voting rights in corporate decisions.
Debt: Debt refers to the borrowed funds that a company raises by issuing bonds, loans, or other debt instruments.

How to Calculate Capital Structure?

Capital Structure calculator uses Capital Structure = Common Equity Weight+Debt Weight+Preferred Stock Weight to calculate the Capital Structure, The Capital Structure is the mixture of debt, preferred stock, and common equity used by a company to fund its operations and purchase assets. Capital Structure is denoted by CS symbol.

How to calculate Capital Structure using this online calculator? To use this online calculator for Capital Structure, enter Common Equity Weight (CEW), Debt Weight (DW) & Preferred Stock Weight (PSW) and hit the calculate button. Here is how the Capital Structure calculation can be explained with given input values -> 1.15 = 0.25+0.35+0.55.

FAQ

What is Capital Structure?

The Capital Structure is the mixture of debt, preferred stock, and common equity used by a company to fund its operations and purchase assets and is represented as CS = CEW+DW+PSW or Capital Structure = Common Equity Weight+Debt Weight+Preferred Stock Weight. Common Equity Weight represents the proportion of a company's capital structure that is financed through common equity, Debt Weight represents the proportion of a company's capital structure that is financed through debt & Preferred Stock Weight represents the proportion of a company's capital structure that is financed through preferred stock.

How to calculate Capital Structure?

The Capital Structure is the mixture of debt, preferred stock, and common equity used by a company to fund its operations and purchase assets is calculated using Capital Structure = Common Equity Weight+Debt Weight+Preferred Stock Weight. To calculate Capital Structure, you need Common Equity Weight (CEW), Debt Weight (DW) & Preferred Stock Weight (PSW). With our tool, you need to enter the respective value for Common Equity Weight, Debt Weight & Preferred Stock Weight and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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