Write a report which discusses and critically evaluates the main theories of capital structure

Title: The Capital Structure PuzzleIf an optimum financing mix exists, then it would be in a company’s best interests to locate it and move towards this optimal capital structure. There has been a large amount of academic discussion on the subject of whether or not an optimal capital structure exists for individual companies. In the real-world companies have all sorts of capital structures, from all equity to high levels of gearing.RequirementYou are required to write a report which discusses and critically evaluates the main theories of capital structure, and with specific regard to Tesco PLC, suggest to what extent particular capital structure theories can be used to explain the financing decisions made by the business over time.