One of the fundamental questions of corporate finance is how a firm should leverage its capital structure. Explain what is meant by capital structure and how important is capital structure in terms of...

subject (corporate finance)

Extracted text: One of the fundamental questions of corporate finance is how a firm should leverage its capital structure. Explain what is meant by capital structure and how important is capital structure in terms of financing decisions of the firms in the present and in the future. Briefly elaborate the differences between ordinary shares and preferential shares.