Capital structure is an important business decision for a finance manager. Discuss the following points related to the capital structure of a business:

What is capital structure, and how it is important in the business decision?

What factors a firm must take into consideration in determining the capital structure?

What are the practical methods for determining the ideal capital structure of a business firm? (refer to Reading 6-1)

Is capital structure dynamic or static? How and why the capital structure of a firm changed over time.