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A capital restructuring may include issuing more equity, issuing debt and repurchasing equity and issuing more debt.
About capital restructuring
Capital restructuring is indeed a corporate activity aimed at adjusting the ratio of stock & debt inside a firm's capital structure. It is frequently done in response to a situation like: Changing market conditions. Hostile takeover bid. Bankruptcy.
Whenever capital restructuring is undertaken, the company must carefully assess its liquidity & capital structure. This implies that accounting modelling, and also financial statement appraisal and analysis, are necessary.
Capital restructuring is indeed an operational method primarily used to cope with changes that impair the business's financial stability. However, it may also be used to rearrange capital assets to frame the company to take advantage of growth chances.
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