Question 1( Mini-Case) You are newly appointed CFO in a listed Mid-Sized company in the food industry. Your company financial performance is stable, with ROE is around 8-10%, which is above industry average; EBIT (Operating Income) interest coverage is sufficient, while company has some seasonality in terms of sales, thus has impact on cash flows. Long term capital financing the company bond credit rating is A-, which means easy to raise debt, cost is lower than short term borrowings.

Identify the capital structure issues that CFO must address and explain the effects and significance of these issues. (3-4 Bulletin points and explain with your understanding, within 350words, 50 Marks)