Question: Please answer two questions intuitively: Why does capital structure matter? What do we mean by Optimal Capital Structure and what's the relationship between Optimal Capital

Please answer two questions intuitively:

  1. Why does capital structure matter?
  2. What do we mean by "Optimal Capital Structure" and what's the relationship between Optimal Capital Structure and Cost of Capital?

http://quickreadbuzz.com/2012/08/09/capital-structure-blend-of-equitydebt-financing-is-key-factor-in-business-value-timesfreepress/

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