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Capital Structure: CNBC Explains

Capital structure is important to understanding how a business is run and financed, and can be easily evaluated by looking through a corporate balance sheet. Capital structure refers to the relationship between a company’s assets and liabilities, including how the assets are funded and the amount of debt managed by the firm. Salman Khan of the Khan Academy explains the concept with a side-by-side comparison of companies with different capital structures.

From this video, you’ll understand:

  • The basics of corporate capital structure
  • How capital structure affects owners’ equity

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