[Verse 1] When companies decide how much to borrow They don't just guess what works today or tomorrow Industry norms become their guiding light Manufacturing heavy, tech companies light Steel and airlines need more debt to grow While software firms keep their leverage low [Chorus] Target capital structure, find the balance right Industry norms and flexibility, keep your future bright Debt to equity ratios, not too high or low Business risk and tax benefits, help your company grow Target capital structure, make it work for you Plan for good times and bad times, see your vision through [Verse 2] Business risk determines how much you can take Stable cash flows mean more debt won't break Utilities and groceries, predictable and steady Can handle higher leverage when the payments are ready But cyclical businesses, up and down they go Need financial cushions when the tough winds blow [Chorus] Target capital structure, find the balance right Industry norms and flexibility, keep your future bright Debt to equity ratios, not too high or low Business risk and tax benefits, help your company grow Target capital structure, make it work for you Plan for good times and bad times, see your vision through [Bridge] Tax shields from interest, save money each year But too much debt brings financial fear Flexibility matters when opportunities call Don't let heavy debt make your options too small Growth plans and acquisitions need financial space Keep some borrowing power for the competitive race [Verse 3] Credit rating agencies watch your every move Too much leverage and your rating they'll remove Higher costs of borrowing, investors lose their trust Balance sheet optimization is really a must Compare to competitors, but know your own game Your target structure makes your financial name [Chorus] Target capital structure, find the balance right Industry norms and flexibility, keep your future bright Debt to equity ratios, not too high or low Business risk and tax benefits, help your company grow Target capital structure, make it work for you Plan for good times and bad times, see your vision through [Outro] Industry, flexibility, tax benefits too Business risk and credit ratings, guide what you should do Target capital structure, now you know the way Balance debt and equity every single day
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