Adairs a) Describe the company's capital structure and payout policies based on annual historical data Capital structures are the ways the corporations view their debts and equities that are utilized by the companies to cover operations funds and the assets which are funded. These structures are known as the debt to capital or debt to equity ratio. ADH Capital Structures Total Interests Long-term Percent Preferred Share Percent debts debts stock stocks equity equity $107,194 $7,457 $73,721 31.00% $0.00 $164,660 69.00% Adairs' capital structure showed that there was no notable change originating from the previous fiscal years (Annual Report, 2020). In the financial year 2017 and 2018 the annual historical data and reports indicated that the totals debts of Adairs remained $50 million. The constant debts do not negatively affect the company's capital structure. Thus, the investors can invest in Adairs because there were no substantial changes in its capital structure. With Mocka Limited acquisition in 2019, there was notable changes in the Adairs' capital structures through financial year 2020 that included upfront cash payments of A$42.50 million financed via increases in group term debt facilities of Adairs. Together with the strong sales results, the interim dividend cancellations, and the support of its main business partners, suppliers and landlords, the efforts of the company in actively managing its cash during the 4th quarter delivered robust cash flow results for second half of financial year 2020. These strong cash flows made debts to greatly decrease to $1.0 million at the conclusion of June 2020 from $46.3 million at the conclusion of December 2019. The corporation has adhered to all of its bank requirements and continues to have great headroom. Until March 2023, $96.40 million finance facilities are available. Adairs has no current plans of materially decreasing or increasing its available debt facilities. Through the FY2020 first half, Mocka and Adairs collectively reinvested in working capital a circa of $15 million in driving continued growth of sales and resetting inventory positions that was partly financed by increases in debts.