Some of the major financial decisions that corporate managements need to take include: Which investments to accept (Investment Decision) What mix of debt and equity to be used for financing (Financing Decision, or Capital Structure Decision) What proportion of the equity should be financed by retained earnings? In other words, what should be the dividend policy At times it can be seen that a project that is otherwise quite viable, results in financial disaster due to an inappropriate capital structure. In this context, explain the FRICTO framework, and how would it impact the capital structure decision for a company. (10 marks)