Capital structure is important to many businesses. You have been promoted to be the
CFO of a stable, but growing commodity business. You are looking to enhance the
capital structure of the firm. Critically discuss the below based on the two readings
provided The capital structure decisions the firms would make if it moved from a country
of high taxes, to a country with no taxes. In your answer provide equations and
diagrammatic illustrations of the effect. Clearly explain the key points on your diagrams
and what assumptions are required.
