Identify an example from your professional experience or in the news where either you or a company has considered changing its capital structure through taking on more debt or paying off existing debt. The academic approach to capital structure gives us formulas to calculate the "optimal" amount of debt for a company.Analyze your example and address the following: Do you believe the correct decision was made? Do you agree with the idea of finding an optimal amount of debt? If so, how precise should companies be with their calculations?

Points to be covered while explaining : Cost of capital , returns on capital , how ROIC and WACC are impacted , what can be the companies future , cash flows .-Please include calculations for these when coming to a conclusion and formulas.

Draw a conclusion at the end on why any one would invest in your company.