Abstract: The paper entitled “Capital Structure: A Contemporary Approach towards financing the overall operation of a firm” This paper helped in gaining the knowledge in the area of capital structure and how it helps the firm to rise the finance through the various sources for various operations. The capital structure is how a firm finances its overall operations and growth by using different sources of funds. It is the proportion of debt, equity and preference share in the firm’s balance sheet. The capital structure should be examined in the viewpoint of its impact on the value of the firm. A financing mix of the capital structure should be maximizing the shareholders wealth. The capital structure decision can influence the value of the firm through the shareholders earnings.