The Association for Financial Professionals (AFP) has 12 Tips for Treasurers Making Capital Structure Decisions, https://www.afponline.org/ideas-inspiration/topics/articles/Details/12-tips-for-treasurers-making-capital-structure-decisions
Read this short online article and compare the practical and “real-life” suggestions to what we have learned this week using more traditional “M&M” based theories of capital structure. Are these two sets of ideas compatible? In what ways? How do you think companies should address their capital structure decisions?
The brachialis is an example of true third-class leverage. It pulls on the ulna just below the elbow, and since the ulna cannot rotate, the pull is direct and true. The biceps brachii, on the other hand, supinates the forearm as it flexes, so that the third-class leverage applies to flexion only. Other examples include the hamstrings contracting to flex the leg at the knee while in a standing position and using the iliopsoas to flex the thigh at the hip. In the third class lever, the force is between the fulcrum and the load: In this case, there is no force advantage – force is NOT increased. In fact, a larger force is actually needed to move a smaller weight, so there is a force disadvantage. The use of this lever is in the gain in speed of movement of the weight. Examples of this lever class include: The inside door handle of a car, the coiled spring pulling on a screen door, a pair of finger-nail clippers, and tweezers. An example of a third-class lever in the human body is the elbow joint: when lifting a book, the elbow joint is the fulcrum across which the biceps muscle performs the work. Here the effort lies between the fulcrum and the load. In our bodies, an example of a lever of the third class is when the biceps contracts, allowing us to lift something in our hand. The elbow is the fulcrum, the hand and its contents are the resistance (or load) and the biceps muscles creates the effort. The load can be moved rapidly over a large distance, while the point of application moves over a relatively short distance. The main purpose of this type of lever is to obtain rapid movement.>GET ANSWER