Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

Capital structure is a term that describes the proportion of a company’s capital, or operating money, that is obtained through debt versus the proportion obtained through equity. Debt includes loans ...

Capital structure refers to the mix of funding sources a company uses to finance its assets and its operations. The sources typically can be bucketed into equity and debt. Using internally generated ...

In the regular corporate world, the capital structure of a company usually means the ratio between the company’s equity (money the company’s owners invested in it) and debt capital (external funding ...

A multiperiod model of optimal capital structure is developed under the assumption that earnings follow an autoregressive process. Firm value and leverage vary through time and, at each date, the firm ...

Healy, Paul M., and Krishna G. Palepu. "Using Capital Structure to Communicate with Investors: The Case of CUC International." Journal of Applied Corporate Finance 8, no. 4 (winter 1996).

What Is a Junior Capital Pool (JCP)? A junior capital pool (JCP) is a corporate capital structure that allows early-stage startups to sell shares in the company before actually establishing a line of ...

We've seen this show before. Several of Legacy's peer firms have tried to stave off restructuring through last minute debt deals. Most went bankrupt anyways. These deals further subordinate investors ...

Preferred shares are an income investor’s best friend when it comes to hybrid securities, which sit above common equity in the capital structure. When a preferred share is trading above its call price ...