Capital Structure Formula

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Capital Structure refers to the mix of a company's sources of funding, both equity and debt, used to finance its overall operations and growth. Check FAQs
CS=CEW+DW+PSW
CS - Capital Structure?CEW - Common Equity Weight?DW - Debt Weight?PSW - Preferred Stock Weight?

Capital Structure Example

With values
With units
Only example

Here is how the Capital Structure equation looks like with Values.

Here is how the Capital Structure equation looks like with Units.

Here is how the Capital Structure equation looks like.

1.15Edit=0.25Edit+0.35Edit+0.55Edit
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Capital Structure Solution

Follow our step by step solution on how to calculate Capital Structure?

FIRST Step Consider the formula
CS=CEW+DW+PSW
Next Step Substitute values of Variables
CS=0.25+0.35+0.55
Next Step Prepare to Evaluate
CS=0.25+0.35+0.55
LAST Step Evaluate
CS=1.15

Capital Structure Formula Elements

Variables
Capital Structure
Capital Structure refers to the mix of a company's sources of funding, both equity and debt, used to finance its overall operations and growth.
Symbol: CS
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Common Equity Weight
Common Equity Weight represents the proportion of a company's capital structure that is financed through common equity.
Symbol: CEW
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Debt Weight
Debt Weight represents the proportion of a company's capital structure that is financed through debt.
Symbol: DW
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Preferred Stock Weight
Preferred Stock Weight represents the proportion of a company's capital structure that is financed through preferred stock.
Symbol: PSW
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.

Other formulas in Asset Management category

​Go Amortization of Intangible Assets
AE=HCIA-RVULA
​Go Net Capital Spending
NCS=ENFA-BNFA+Depn
​Go Residual Income
RI=OI-MRRRAOA
​Go Internal Growth Rate
IGR=RRROA

How to Evaluate Capital Structure?

Capital Structure evaluator uses Capital Structure = Common Equity Weight+Debt Weight+Preferred Stock Weight to evaluate the Capital Structure, The Capital Structure is the mixture of debt, preferred stock, and common equity used by a company to fund its operations and purchase assets. Capital Structure is denoted by CS symbol.

How to evaluate Capital Structure using this online evaluator? To use this online evaluator for Capital Structure, enter Common Equity Weight (CEW), Debt Weight (DW) & Preferred Stock Weight (PSW) and hit the calculate button.

FAQs on Capital Structure

What is the formula to find Capital Structure?
The formula of Capital Structure is expressed as Capital Structure = Common Equity Weight+Debt Weight+Preferred Stock Weight. Here is an example- 1.15 = 0.25+0.35+0.55.
How to calculate Capital Structure?
With Common Equity Weight (CEW), Debt Weight (DW) & Preferred Stock Weight (PSW) we can find Capital Structure using the formula - Capital Structure = Common Equity Weight+Debt Weight+Preferred Stock Weight.
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