1.Explain the trade-offs that firms must consider when they determine their target capital structure 2. Explain the effects that debt financing has on the firms risk and cost of capital 3. Summarize capital structure theory 4.Explain why firms in different industries have different capital structure. 5.Explain why some investors like the firm to pay more dividends while other investors prefer reinvestment and the resulting capital gains. 6. Discuss the various trade-offs that companies face when trying to establish their optimal dividend policy. 7. Differentiate between stock splits and stock dividends. 8.List the advantages and disadvantages of stock repurchases vis--vis dividends from both investors and companies perspectives.