Two key components of a prudent capital structure are the debt maturity composition and the debt to equity composition.

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A prudent capital structure involves managing the mix of debt and equity in a way that balances risk and return for the company and its stakeholders. The debt maturity composition and the debt to equity composition are two important factors to consider in achieving this balance. The debt maturity composition refers to the distribution of debt obligations over different time periods or maturities, while the debt to equity composition relates to the proportion of debt financing versus equity financing used by the company. Both of these factors can impact the company's financial flexibility, ability to manage cash flow, and overall risk profile. Therefore, a prudent capital structure should take into account both debt maturity and debt to equity ratios.

Two Key Components of a Prudent Capital Structure Are the Debt