V$.$ Capital Structure Choices $($grace manufacturing company$)$

$$ What are the different kinds or types of financing that this company has used to raise funds? Where do they fall in the continuum between debt and equity?

$$ How large, in qualitative or quantitative terms, are the advantages to this company from using debt?

$$ How large, in qualitative or quantitative terms, are the disadvantages to this company from using debt?

$$ From the qualitative trade off, does this firm look like it has too much or too little debt?

VI$.$ Optimal Capital Structure

$$ Based upon the cost of capital approach, what is the optimal debt ratio for your firm?

$$ Bringing in reasonable constraints into the decision process, what would your recommended debt ratio be for this firm?

$$ Does your firm have too much or too little debt

o Relative to the sector?

o Relative to the market?