Capital Structure and Its Significance in Business Operations

Finance

Executive Summary
The capital structure consists of equity and debt amount employed by an organization for
financing the assets and carrying out the business activities. It is very much important for an
organization to keep a balance between debt and equity in order to avoid any kind of financial
risks. Thus, an appropriate mixture of debt and equity is required for ensuring an efficient
capital structure. The capital structure is being determined and examined in relation to debt
and equity financing.
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Table of Contents
Executive Summary...............................................................................................................................1
Introduction...........................................................................................................................................3
Aim and Objectives...........................................................................................................................3
Significant Theories of Capital Structure and Underlying Rationale.....................................................3
Different capital structure theories.....................................................................................................4
Analysis of the Capital Structures Of Royal Dutch Shell Plc And British Petroleum Plc......................4
Conclusion.............................................................................................................................................6
References.............................................................................................................................................7
Appendix...............................................................................................................................................8
Appendix 1........................................................................................................................................8
Appendix 2........................................................................................................................................8
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