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What is the meaning of Capital Structure Ratios?
Capital structure ratios of every company are of great significance due to the several reasons:
- Same business can come up with different results.
- Liquidity of the company.
- Arrangement which ultimately brings down the total cost.
- Solvency of the company.
- Capital employed must be of such nature that can amplify results.
Capital structure ratios in other terms can be defined as the way how a company looks after its financial terms on an overall growth and operations by using external sources for funds.
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