Shyla Limited is a private company which is considering a stock market floatation. Currently it is financed entirely by ordinary share capital and reinvested profits. Thereafter it intends to expand its operations, and expansion which will require additional funding. The directors are unsure whether additional funding should be raised through and issue of ordinary shares, acquiring debt, or a mix of both. The directors have been advised that in deciding which funding approach to adopt, they should take account of the impact on the company's capital structure. One director is of the view that the company should seek an optimal capital structure. Another is of the view that there is no need to seek an optimal capital structure. The other directors are confused. Required: Advise the directors as to what should be considered and why in the context of implications for the company's capital structure. Illuminate your advice by including financial figures and numbers as appropriate