THE DETERMINANTS OF CAPITAL STRUCTURE” WITH SPECIAL REFERENCE TO MICRO TECH CNC PVT LTD AT HOSUR

Abstract

Capital structure refers to the specific mix of debt and equity that a company utilizes to finance its operations and growth. This strategic decision is pivotal in determining a firm's financial health, risk profile, and overall value. Debt financing involves borrowing funds that must be repaid with interest, while equity financing entails raising capital through the sale of ownership stakes, such as common or preferred stock. An optimal capital structure aims to balance the benefits and risks associated with debt and equity.