Capital structure

RECENT NEWS
The Economic Times  May 3  Comment 
If you look at the overall, after the deal, the capital structure will definitely improve to some extent, says Harit Shah.
Cloud Computing  Oct 19  Comment 
WGI Holdings, Inc. (PINKSHEETS: WGIH) wishes to announce the company has updated its share structure on the OTC Markets website to reflect the correct current float amount that are in the open market at 1,500,200,000 shares. read more
StreetInsider.com  May 31  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Stock+Buybacks/Flowserve+%28FLS%29+Outlines+New+Capital+Structure+Strategy%3B+Approve+%241B+Buyback/7484877.html for the full story.
StreetInsider.com  Mar 13  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Corporate+News/Diamond+Foods+%28DMND%29+%27Making+Substantial+Progress%27+on+Restatement%2C+to+Evaluate+Capital+Structure/7263946.html for the full story.
Mondo Visione  Sep 20  Comment 
1. There has been recent interest in dual classes of shares. The use of imprecise terms in public commentaries might have contributed to confusion in the marketplace. Investors should not mistake a capital structure of ordinary and preference...
Financial Times  Sep 16  Comment 
The company, which has £240m of net debt, is looking to maximise its headroom, say people close to the situation
The Hindu Business Line  Sep 4  Comment 
It would appear so if the Reserve Bank of India's draft guidelines on the entry of new private banks is any indication. Indeed, an interesting conceptual issue thrown up by the draft guidelines...
StreetInsider.com  Jun 30  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Corporate+News/KB+Home+%28KBH%29+Issues+Update+on+Capital+Structure%2C+Liquidity+Position/6613164.html for the full story.
StreetInsider.com  Jan 28  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Corporate+News/Dana+Holding+%28DAN%29+Completes+Capital+Structure+ReFi/6242848.html for the full story.
BusinessWeek  Jan 10  Comment 
Fairholme Capital Management LLC, the largest shareholder of American International Group Inc. after the U.S. government, plans to hold talks with management and stockholders about the insurer’s capital structure.




 
TOP CONTRIBUTORS

A company's capital structure refers to the relative proportions of equity (raising money by selling shares) and debt (raising money by borrowing) which the company uses to finance its activities.

A company's capital structure can have an enormous impact on its earnings per share, taxes, and interest payments, even though it is relatively easy for companies to change capital structures - I.E., to pay off debt by selling new shares, or to borrow money and buy back shares. As a result, valuation metrics which are not "capital structure neutral" -- ie, which are impacted by capital structure -- make it difficult to compare one company to another.

Earnings, for example, are not capital structure neutral because of the impact of taxes and interest. As a result, investors use metrics such as EBIT and EBITDA instead - profitability metrics which exclude the components of a company's earnings impacted by its capital structure - to compare companies and understand the fundamental earnings potential of the business.

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