the proportions of the market value of the firm's assets financed via debt, common stock, and preferred stock are called the firm's
the proportions of the market value of the firm's assets financed via debt, common stock, and preferred stock are called the firm's Capital structure weights
The assets of any firm can be financed via debt, common stock or preferred stock. The proportion of the structure financed via different methods of financing is capital structure weight.
Let's say a firm has a market value of $100.
$40 worth of assets are financed via debt, $50 worth of assets are financed via common stock and $10 worth of assets are financed via preferred stock. Then the proportions ie. 40%, 50% and 10% respectively are called the firm's capital structure weights
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