Capital structure refers to the mix of debt and equity used by a company to finance its overall operations and growth. The key considerations for a company's capital structure include: 1. The financial break-even point, which is the level of earnings before interest and taxes that is just enough to pay total financial charges. 2. The point of indifference or range of earnings, which is the earnings level where earnings per share remains the same regardless of the debt-equity mix. 3. Balancing the risk-return tradeoff, as using more debt increases financial risk but can improve returns if earnings exceed the cost of debt. The optimal capital structure maximizes the value of the firm by considering these factors