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Explanation & Answer
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Introduction
A. Topic/focus of the essay
B. Thesis Statement
Body
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A. Summary of first piece of supporting evidence/information
B. Summary of second piece of supporting evidence/information
Second paragraph description
A. Summary of first piece of supporting evidence/information
B. Summary of second piece of supporting evidence/information
Third paragraph description
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B. Summary of second piece of supporting evidence/information
Conclusion
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Running Head: ASSIGNMENT
Assignment
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Instructor's Name
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Date
ASSIGNMENT
2
QUESTION ONE
Capital structure refers to a keen balance between a particular country's equity and its
debts that its businesses activities use to finance its assets, daily operations as well as their Gross
Domestic Products to enhance future investment. Capital structure decision plays a vital role in
increasing investment in a particular state. Capital structure decision is essential, especially in
analyzing and determining a specific risk that could be associated with investment products. It
explains how to fund that particular investment product as well as the source of capital that
would support the investment product. Thus, capital decision considers specifically Gross
Domestic Products as well as weighing different source of funds that could have been used in
investing. The state's Gross Domestic Products are usually determining scenarios of investment
in various countries, especially in the increase in their production of goods and services. An
investment decision is being determined by economic growth situations such as how different
consumers spend, foreign trades and various business activities.
Additionally, various innovations and technological advances in different countries are being
determined by the capital structure decision, which involves investing to realize the future
economic growth of a particular country (Serfling, 2016). Capital structure decision facilitates
scenarios of investment, especially when the Gross Domestic Products are purchased. Capital
structure decisions play an active role in ensuring that various sources of revenue are generated
and that they are used in investment products and choices. The improved capital goods and
services are usually determined by capital structure decision that increases the productivity and
efficiency of the Gross Domestic Products. As a result, there would be much profit maximized
with the help of capital structure decision that could be used i...