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Finance ABC
30. Capital Structure Theories
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Welcome to another episode of Finance ABC, the show where we demystify financial concepts and make them accessible for everyone. Today, we’re tackling a topic that’s fundamental to understanding how businesses are financed: "Capital Structure Theories." Now, that might sound a bit abstract, but it’s actually one of the most important concepts in corporate finance. Capital structure refers to the way a company finances its operations and growth—how much it relies on debt versus equity. And the theories around it explain why companies choose certain mixes of debt and equity to fund themselves.
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