The relative proportions of debt,equity,and other securities that a firm has outstanding constitute its

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Capital structure refers to the mix of debt, equity, and other securities that a company uses to finance its operations. It is a crucial aspect of a company's financial management and affects its overall risk profile and ability to meet its financial obligations. Leverage refers specifically to the use of debt to finance a company's operations and is a component of its capital structure. Retained earnings and paid out capital are related to a company's earnings and distributions to shareholders, respectively, but are not synonymous with its capital structure.

The Relative Proportions of Debt,equity,and Other Securities That a Firm