Critically evaluate theoretical advantages and disadvantages of the company's capital structure with regards to the debt and equity structure of the business. How these advantages and disadvantages apply to the specific company? Your answer must be accompanied by significant evidence from the literature.

The following table presents Engie's (an energy company) financial information for 2017.

STATEMENT OF FINANCIAL POSITION

ASSETS Inmilions of culos Notes Dec. 31, 2017 DOG. 31, 2016 Non-current anceta GoodWill 12 17 285 Intangible assets, net 17,372 13 6.504 6,639 Property, plant and equipment, net 14 51 224 57,739 15 2 656 2,997 Loans and receivables at amonized cost 15 2,976 2,250 Delvative Instruments 15 2.943 3.603 Investments In entiles accounted for using the equity method 3 7 409 6 624 Other assets 25 567 431 Deferred tax assets 10 803 1,250 TOTAL NON-CURRENT ASSETS 52 171 98,905 Current assets Loans and receivables at amoriized cost 15 599 595 Detvative Instruments 15 7 378 9.047 Trade and other receivables, net 15 20,311 20,835 Inventories 25 4 155 31656 Other 386813 25 3,492 10,592 Financial assets at fair value through Income 15 1 608 1,439 Cash and cash equivalents 15 8.931 9,825 Assets classified as held for sale 4 6.687 TOTAL CURRENT ASSETS 3,506 56.161 59,595 TOTAL ASSETS 150,332 158,493 NB: The amounts shown in the tables are expressed in millions of euros. In certain cases, rounding may cause non-material discrepancies in the totals.LIABILITIES Inmilions of cups Notes Dec. 31. 2017 DOG. 31, 2016 Shareholders equity 36 639 39,578 Non-controlling Interests 2 5.938 5,870 TOTAL EQUITY 17 42.517 45,447 Non-current llabilities Provislong 18 18 423 19,451 Longer bolTowings 15 25 292 24,411 Deivative Instruments 15 2 980 3,410 Other finandal lablines 15 32 200 Other labillet 25 1.009 1,203 Deferred tax llabliles 10 5.220 6,775 TOTAL NON-CURRENT LIABILITIES 52 950 55,461 Current IlablIdea Provisions 18 3.340 2,747 Short-em borrowings 15 8.176 12,539 Devative Instruments 15 8,720 9,226 Trade and other payables 15 16 432 17,075 Other labilies 25 14 756 15,702 Liabilities directly assodated with assets dasolfled as held for sale 4 3,371 300 TOTAL CURRENT WABILITIES 54.735 57,591 TOTAL EQUITY AND LIABILITIES 150,332 158,499 NB: The amounts shown in the tables are expressed in milions of euros. In certain cases, rounding may cause non-material discrepancies in the totals.Notes Dec. 31, 2017 Revenues 7.1 65,029 Purchases (36,740 Personnel costs 7.2 (10 062 Depreciation, amorization and provisions 7.3 3.735 Other operating expenses (11 077) Other operating Income 1,441 CURRENT OPERATING INCOME 7 4,835 Share In net Income of entitles accounted for using the equity method 3 437 CURRENT OPERATING INCOME AFTER SHARE IN NET INCOME OF ENTITIES ACCOUNTED FOR USING THE EQUITY METHOD 5.273 Mark-to-maker on commodity contracts other than trading Instruments 8.1 307 Impalment looses 3.2 (1,317) Restructuring COSTS 3.3 671 Changes In scope of consolidation 8.4 752 Other non-recurring hems 8.5 91 1) INCOME LOSS) FROM OPERATING ACTIVITIES 2.819 Financial expenses (2.122) Financial Income 327 NET FINANCIAL INCOME LOSS 1.236 Income tax benefit expense) 10 125 NET INCOME LOSS] RELATING TO CONTINUED OPERATIONS 1,948 NET INCOME/ LOSS] RELATING TO DISCONTINUED OPERATIONS 290 NET INCOME LOSS] 2,238 Net Incomel( loss) Group share 1,423 Of which Net Income (loss) relating to continued operations, Group share 1,220 of which Net Income (loss) relating to discontinued operations, Group share Non-controlling Interest B15 Of which Non-controlling Interests relating to continued operations 722 of which Non-controlling Interests relating to discontinued operations BASIC EARNINGS/ LOSS) PER SHARE EUROS) 11 0.53 of which Bask earnings gross) relating to continued operations pershare 0.45 of which Back earnings floss) relating to discontinued operations pershare 0.05 DILUTED EARNINGS LOSS) PER SHARE (EUROS] 11 0.59 of which Diluted earningsfloss) relating to continued operations per share 0.45 ofwhich Diluted earnings loss) relating to discontinued operations parshare 0.08