Abstract:
In Pakistan’s economy, the role of the oil and gas sectoris very
dynamic in the progression of the organization’s growth. This
research study is based on the impact of capital structure on
profitability of oil and gas sector. This capital structure
includes the organizations long-term and short-term debt, common
equity, earning per shares and many other related technique
which are used to determine the organization performance. In
this research study, the researcher emphasize is on Modigliani
and Miller's capital structure irrelevance proposition theory
and model. The main functionality of M and M capital structure
model and theory is effectively utilized by Weight average cost
of capital (WACC) always remain constant and helpful for
changing company capital structure.Type of research study is
qualitative in nature. The outcome of this study is based on
capital structure model that performing its firm operational
functional activities associated with debt evaluated in term of
oil and gas sector. This equity is evaluated in term of Shortterm
debt such as working capital requirements is also
considered to be part of the capital structure.
