How does your financial structure help your company achieving its objectives?

QUESTION:
How does your financial structure help your company achieving its objectives?
SOLUTION:
Financial Structure refers to the predefined mix of long term debt and equity that is used by the
company to finance its business i.e. operations. The financial structure directly affects the risk
associated with the business and the value of the business. The main objective of business is to
maximize its value i.e. market capitalization and minimizes the risk of the company. This can be
done by using the appropriate mix of debt and equity in financial structure. The financial...