I want to know what the capital structure is of Smuckers (SMJ). THe most recent information

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I want to know what the capital structure is of Smuckers (SMJ). THe most recent information

Answered Same DayDec 22, 2021

Answer To: I want to know what the capital structure is of Smuckers (SMJ). THe most recent information

David answered on Dec 22 2021
130 Votes
Capital Structure
Capital structure can be defined as the mix of long term debt, short term debt, common stock and
preferred e
quity. It shows how the company finances its overall operations and growth by using
various sources of funds. The debt is issued in the form of bonds, long term notes payable while
equity is common stock, preferred stock or retained earnings. The working capital requirements
are classified as short debt and are also considered as part of the capital structure of the firm.
Generally the debt equity ratio is evaluated by the investors and this provides detail about the
riskiness of the company. The firm which is financed by debt carries high risk.
Capital Structure refers to the predefined mix of long term debt and equity that is used by the
company to finance its business i.e. operations. The financial structure directly affects the risk
associated with the business and the value of the business. The main objective of business is to
maximize its value i.e. market capitalization and minimizes the risk of the company. This can be
done by using the appropriate mix of debt and equity in financial structure. The financial
manager of every company is concerned with deciding the borrowings for the company and the
best mixture of debt...
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