What Does Capital Structure Mean?

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What does Capital Structure mean? Read on to discover the definition & meaning of the term Capital Structure - to help you better understand the language used in insurance policies.

Capital Structure

Capital Structure

A term used in enterprise risk management (ERM) meaning the determination of the optimal mix of capital by type (i.e., debt, common equity, preferred equity) given the risk profile and performance objectives of the enterprise.

We hope the you have a better understanding of the meaning of Capital Structure.

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