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What is the difference between the levered capital structure and unlevered capital structure?

Accounting Finance Accounting and Finance
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Question added by Ahsan Ishtiaq , Junior Accountant , American School of Creative Science
Date Posted: 2017/07/24
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Khaliq Raza MBA MS CFE AFA
by Khaliq Raza MBA MS CFE AFA , Senior Accountant , ARCO TURNKEY SOLUTIONS CONTRACTING LLC

The Major and Basic difference is Source of Financing of Capital like...Levered Capital= Debt + EquityUnlevered Capital= Equity 

Ahsan Ishtiaq
by Ahsan Ishtiaq , Junior Accountant , American School of Creative Science

Unlevered capital structure is the one where there is no debt in the company, the comapny is completely financed by using equity. Whereas, Levered capital structure involves the combination of both debt and equity in the company.

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