[Verse 1] Every company needs money to grow and succeed Two main ways to get it, let's plant the seed You can borrow the cash, that's debt financing Or sell shares of ownership, equity's rising Bank loans and bonds put you in debt Stockholders buy pieces of what they can get [Chorus] Capital structure, debt and equity mix Choose the right balance, that's how value sticks D-E-B-T means you owe and you pay E-Q-U-I-T-Y, owners have their say Find the sweet spot where your costs are low Capital structure makes your company glow [Verse 2] Debt is cheaper 'cause interest deducts from tax But too much borrowing puts strain on your backs Equity's expensive but gives you more room No required payments when profits don't bloom Leverage increases both risk and return Get the mix wrong and your bridges will burn [Chorus] Capital structure, debt and equity mix Choose the right balance, that's how value sticks D-E-B-T means you owe and you pay E-Q-U-I-T-Y, owners have their say Find the sweet spot where your costs are low Capital structure makes your company glow [Bridge] Weighted average cost of capital tells the tale Mix debt and equity so your firm won't fail Industry matters, stability counts Higher debt ratios when cash flow amounts Financial flexibility versus tax shield The optimal structure makes maximum yield [Chorus] Capital structure, debt and equity mix Choose the right balance, that's how value sticks D-E-B-T means you owe and you pay E-Q-U-I-T-Y, owners have their say Find the sweet spot where your costs are low Capital structure makes your company glow [Outro] When financing decisions come your way Remember these rules every single day Balance the costs with the risks you take Capital structure decisions your firm will make
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