Dentonal Co. Ltd is a renowned food manufacturing company operating in the whole over Nepal. It has the 77 branches ( one branch in one district). Mainly it is producing the rice, floor, vegetables, and other daily consumable foods and supplying all over the Nepal and exports in the foreign countries as well. The main focus of the company is in quality. Management team believe that sustainability of the company in long run is only of quality factor. This company has invested around 3% of the margin in corporate social responsibility for creating positive perception in the society. There is the separate quality control department where seven process engineer are working for controlling quality. Based on the past financial statement,the sales turnover of the company is increasing very extremely. Demand of the product is also increasing in current phase in national and international market. As the report of research and development department, management is planning to expand its operation in all branches. An estimated budget required for expanding the is Rs. 2 billion. There are two option for raising the additional capital i.e debt and equity for the expansion purpose. Suppose, Dentonal Company hired as the chief financial officer to you and you have to consult to. Dentonal company regarding the capital composition of this required capital. As a chief finance officer, what are the factors you will be considered in capital structure decisions of this expansion purpose.

What are the key benefits of using more debt in the Nepalese market?