Optimal Capital Structure

Cost of capital is the means by which a business can raise money, either through the issuance of stock, borrowing, or a combination of the two. Keep in mind that a business must earn money that is equal to, if not more than, what is being invested to receive an acceptable return. Discuss one or two methods used in the capital budgeting process and the advantages that each represent.

This is just a discussion question. Only needs 2-3 paragraphs with 2 references.