The document discusses capital structure, which refers to the composition of a company's long-term financing, including loans, reserves, shares, and bonds. It outlines factors that influence a company's capital structure such as financial leverage, risk, growth, and external conditions. The document also discusses the concept of an optimal capital structure that maximizes firm value and minimizes the cost of capital. It notes different types of leverage including financial, operating, combined, and working capital leverage and how they impact a company's earnings and risk.