A company's capital structure comprises long-term debt, short-term debt, and equity, which are vital in financing its operations.
Capital structure refers to the way a company finances its operations by using different sources of funds. Components of a company's capital structure include long-term debt, short-term debt, and equity. Long-term debt involves borrowing money for an extended period, while short-term debt involves shorter repayment periods. Equity represents ownership in the company, where shareholders have a stake in the business.
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