What is meant by a flexible capital structure?

Answer 1

Capital structure which keeps room for expansion or reduction of capital is called as flexibile capital structure.

Exapnsion is easy.

Shares and redeemable debentures can be used as securities for raising the finance.so that in future the capital can be reduced.

A mix of a company's long-term debt, specific short-term debt, common equity and preferred equity. The capital structure is how a firm finances its overall operations and growth by using different sources of funds.

Debt comes in the form of bond issues or long-term notes payable, while equity is classified as common stock, preferred stock or retained earnings. Short-term debt such as working capital requirements is also considered to be part of the capital structure.