Definition of Corporate capital:
A corporation has several options for sourcing capital. Equity capital is one broad source with multiple components. Common shares and preferred shares issued by the company, as well as additional paid in capital, are part of a company’s equity capital. These types of equity allow outside investors the opportunity to take partial ownership in the company. Retained earnings, accumulated profits that have been reinvested in in the business instead of paid out to shareholders, are another form of equity.
Company assets that can be converted to owners equity in the event of financial difficulties. If difficulties arise, losses would come from corporate assets rather than operating income.
Corporate capital is the mix of assets or resources a company can draw on in financing its business. Corporate capital results from debt and equity financing. In deciding on and managing their capital structure, a company's management has important decisions to make on the relative proportions of debt and equity to maintain.
How to use Corporate capital in a sentence?
- Capital structure is the particular mix of debt and equity that make up a company's corporate capital.
- How a company manages its corporate capital can reveal a lot about the quality of its management, financial health, and operational efficiency.
- Corporate capital includes any assets a company may use to finance its operations, and it may be derived through debt or equity sources.
Meaning of Corporate capital & Corporate capital Definition