Comment critically on the financial managers’ role in determining the suitable capital structure and relevant finance sources of their organisations. The cost of finance, whether in debt or equity, is neutral. That assumes the tax treatment of equity dividend payouts is the same as that of debt interest payouts, and in most jurisdictions, debt interest has an edge. Nevertheless, with corporate tax rates in the US and UK cut to levels unimaginable a few decades ago, the relative benefits of debt issuance are less obvious than they once were”.