1.   Consequently, developments in the international financial structure have had a Decisive influence on how wealth-creating activities are divided among nations.

2.   In both periods, the Decision making of governments and enterprises was greatly complicated by the changes in the financial structure.

3.   It is important to understand the financial structure of the firm before we look at share pricing.

4.   They will therefore be interested in the firm only in so far as its activities and financial structure influence the risk class of the bonds.

5.   The first company has all equity financing while the second has used some debt in its financial structure.

6.   Hence, the implication is that the price of equity will fall in direct proportion to the increase in the use of debt in the financial structure.

7.   A simplified model of financial structure is presented.

8.   Presented a simplified model of company financial structure.