Total capital is defined as total debt + equity… but I have also seen it defined as total debt + common equity + preferred equity.
I don’t think “equity” is the same as “common + preferred”. What about the other parts in the equity section? (retained earnings, additional paid in capital,…so on). Perhaps common equity does not mean common stock, but is more general than that?
so is it total equity ( as in simply assets-liabilities) or is it specifically just common equity + preferred equity that is used when total capital is calculated?
…side reassurance… “capital” and “total capital” are the same thing right?