CAPITAL STRUCTURE To run any business org. capital play an important role.

Without capital no organization can run or it is impossible to run. So org. Have to borrow from external sources like equity share, preference share, debenture, long term debt. For this we have to pay cost or interest or dividend to a creditors . So all this called cost of capital, return on capital, Cost of capitalization. Yield means market price. Capitalization means total amount of security issued by company. Capitalization is Quantitative aspect of financial planning of an enterprise. Capital structure refers to the kind of security and proportionate amount