I really don't have the energy to write my thesis. I'm sorry that I can give you some relevant information for your reference. It seems that the answer is repeated. Hehe, I'm sorry: the relationship with capital cost, financial leverage and capital structure: (1) The relationship between debt financing and capital cost. Corporate financing is an important and complicated job. Financing management is a basic content of enterprise financial management, and the funds raised by enterprises can be obtained through certain channels and methods. Before raising funds, enterprises must adopt certain methods to predict the demand for funds. Only in this way can the raised funds meet the needs of production and operation, and there will not be too much idle. While determining the amount of funds, financing time and sources of funds, enterprises must also study the capital costs of various financing methods when raising funds, because enterprises must pay a certain price when raising funds, and the capital costs under different financing methods are high and low. This requires enterprises to analyze and compare various financing methods, choose an economically feasible financing scheme, establish a reasonable capital structure, raise funds at a lower capital cost and reduce enterprise risks. (B) the relationship between debt financing and financial leverage If an enterprise wants to raise funds, borrowing debts will inevitably bring the risk of paying interest on fixed debts. No matter whether the enterprise is profitable after borrowing debt, the interest on debt is fixed. As long as there is a fixed interest payment for raising debt funds, there must be financial leverage. However, the degree of financial leverage of different enterprises is not completely consistent. Therefore, it is necessary to measure financial leverage, analyze the different functions of financial leverage under the condition of constant total amount of funds, determine a reasonable capital structure, and make enterprises use financial leverage as much as possible to produce good results. Prevent possible adverse effects, thereby reducing enterprise risks and improving expected earnings per share. (3) Relationship between debt financing and capital structure The purpose of debt financing is mainly to expand reproduction or invest in long-term projects for enterprises and increase enterprise value. Therefore, it is necessary to choose a capital structure that can improve earnings per share, because capital structure refers to the composition and proportion of various long-term financing sources of enterprises, and capital structure is the core issue of enterprise financing decision. Enterprises should comprehensively consider the relevant influencing factors, adopt appropriate methods to determine the optimal capital structure, and continue to maintain it in the future additional financing. Enterprises should reasonably determine the relationship between the two financing ratios. Debt financing has dual functions. Rational use of debt can reduce the capital cost of enterprises, but excessive debt will also bring greater financial risks and adjust the unreasonable capital structure, thus making the adjusted capital structure the best financing scheme for enterprises. In short, debt financing should not only consider the capital cost, but also analyze the financial cost, make full use of the role of financial leverage, and choose a capital structure with lower capital cost to maximize the total value of the enterprise. Impact on capital cost, financial leverage and capital structure (I) Impact of debt financing on capital cost Capital cost includes two parts: financing cost and capital occupation cost. Financing expenses refer to various expenses paid in the process of financing, usually referring to one-time expenses incurred in the process of financing. And capital occupation refers to the expenses paid by occupying funds, which is a kind of expense that often occurs in enterprises. Therefore, when raising funds, enterprises should determine a reasonable measurement method to calculate the cost of funds according to their operating conditions, and in enterprise management, relative numbers are often used as indicators to measure the cost of funds. Namely: capital cost = capital occupation fee/total financing-financing fee. Capital cost is one of the important contents of financial management. As far as debt financing is concerned, it is the lowest cost for enterprises to strive for capital, which is an important parameter for financial decision-making and the basis for choosing financing schemes. For example, an enterprise plans to raise 2 million yuan, ready to raise funds by way of debt. If the loan is from a bank, the interest rate is 1 1%, and the interest is paid once a year, and the principal will be repaid when due. The financing expense rate is 0.5%, and the enterprise income tax rate is 33%. According to the calculation, the financing cost of this long-term loan is 7.40%. In this way, enterprises can analyze in detail whether they can bear the financing cost and choose or give up this financing scheme. In addition, the cost of capital also plays an important role in raising additional long-term funds for enterprises and in the decision-making of different financing schemes. (B) the impact of debt financing on financial leverage When enterprises choose debt financing, they can use the tax deduction effect of financial interest to exert the financial leverage effect, reduce the debt cost and improve the investment income. The so-called financial leverage means that when the income before interest and tax increases, the fixed financial expenses borne by each yuan of earnings will be relatively reduced, which can bring more earnings to ordinary shareholders. Usually, the degree of financial leverage is used to indicate the degree of financial leverage. The degree of financial leverage refers to the rate of change of common stock's profit per share equivalent to the multiple of earnings before interest and tax's rate of change. This shows that the greater the degree of financial leverage, the greater the financial leverage and the greater the financial risk. The purpose of using debt financing is to use the effect of financial leverage. Therefore, enterprises should analyze under what circumstances they can make full use of the effect of financial leverage to improve earnings per share and avoid its adverse effects. (III) Impact of debt financing on capital structure Capital structure refers to the composition and proportion of various sources of long-term financing for enterprises. The capital structure of an enterprise consists of long-term debt capital and equity capital. Because there are many differences between equity capital and debt capital in after-tax cost, risk, income, liquidity and the requirements of capital providers for enterprise control, the core task of enterprise capital structure management is to rationally allocate the proportion of equity capital and debt capital in order to achieve the best capital structure. In order to obtain reasonable debt financing to adjust the capital structure, enterprises must calculate their own single capital cost and its influence on financial leverage, and also consider the weighted average capital cost of enterprises, which is of great significance for enterprises to choose single or combined financing schemes. Whether an enterprise can achieve low-cost and high-efficiency returns after debt financing is an important issue that every enterprise is concerned about and an important parameter that determines the capital structure. The methods to determine the optimal capital structure are: earnings per share indifference method, comparative capital cost method and company value analysis method. Whether the capital structure is reasonable can be measured by the change of earnings per share. The capital structure that can improve earnings per share is reasonable, the capital structure with the lowest weighted average cost of capital is reasonable, and the capital structure with the largest enterprise value is reasonable. To sum up, it is difficult for any enterprise to achieve the expected goal without using debt, but debt management is not unlimited, which requires enterprises to rely on experience to determine a reasonable asset ratio, so as not to affect the development of enterprises due to excessive debt and increase their financial risks. Debt financing should not be excessive, but also compare the capital cost of debt financing with the value that enterprises can create. At the same time, we should strengthen financial management, use financial leverage to improve the earnings per share of enterprises, choose a reasonable capital structure and create higher shareholder wealth. Necessity of debt financing Debt is an important source of funds for enterprises. It is difficult for enterprises to meet the needs of enterprise development by relying only on their own funds without using debts. In western countries with developed market economy, those enterprises with high debts can borrow money at lower cost and constantly improve their efficiency, often because they have good reputation and are good at management. Debt financing refers to raising funds through liabilities, while long-term liabilities refer to debts with a repayment period of one year or more and more than one operating cycle. In China, there are mainly long-term loans and long-term bonds. Long-term loan is a financing method used by enterprises. Long-term loans can generate financial leverage. The funds raised by enterprises are time-consuming and need to be repaid at maturity. No matter how an enterprise operates, it needs to pay fixed debt interest, which can offset taxes and improve earnings per share in a certain period of time. It is precisely because of the fixed interest expense and financial leverage effect that the capital cost of corporate debt is low. In addition, due to the long repayment period of long-term loans, it can not only meet the long-term capital needs of enterprises, but also reduce the pressure of debt repayment, and the risk is relatively small, thus becoming an important source of funds for the company. [Edit this paragraph] The ways of debt financing mainly include bank loans, bond issuance, financial leasing and commercial credit. (1) Bank loan Bank loan is a financing method for enterprises to borrow funds from relevant banks or non-bank financial institutions according to loan contracts, also known as bank loan financing. (2) The issuance of corporate bonds refers to the securities issued by the company in accordance with legal procedures and scheduled to repay the principal and interest within a certain period of time. (3) Financial leasing refers to a contractual act in which the lessor grants the lessee the right to possess and use the property within the agreed time limit under the condition that the lessee gives a certain reward. Financial lease, also known as financial lease, is a long-term lease form different from operating lease. Because it can meet the long-term demand of enterprises for assets, it is sometimes called capital leasing. (4) Commercial Credit Commercial credit refers to the loan relationship formed by delayed payment or delayed delivery in commodity transactions, which is a direct credit relationship between enterprises. Using commercial credit, also known as commercial credit financing, is a short-term fund with various forms and wide application.