Task: Comment critically on the financial managers’ role in determining the suitable capital structure and relevant finance sources of their organisations. Needs to be 2,500 words and is due before 12 PM Friday 8th January UK time. assignment should: i)Include detailed references to a variety of literature sources; ii)Include real-world examples supported by published reports and data you have used in your research Students will need to do their own additional reading and research to achieve a good grade. Higher marks will be awarded to essays making considered use of appropriately referenced work. A good essay will (almost) certainly contain a clear description of relevant theories. A useful further consideration is the implications of the theory. Where appropriate, diagrams can be a good addition to your essay. The Financial Times (29 January 2018) revealed some statistics about the dramatic trend of de-equitisation in the European market as well as the US and emerging markets: “De-equitisation, the shedding by corporates of equity in favour of debt, has been the theme for the past decade as low-interest rates allowed companies to borrow at previously unimaginable costs. However, such explanations for de-equitisation are unsatisfying. So-called capital structure theory, known as Modigliani-Miller after the Nobel Prize-winning economists who developed it, says that all things being equal, a company’s true value is independent of how it is financed. 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”.