maximizes the return to shareholders. It means the maximum utilization of capital to the latter extent that it earns more profitability for the company through efficient utilization of capital structure. The main objective of the company is to maximize the value of the company. This is done by minimizing the cost of capital and maximizing the value of the company's shares. The optimal capital structure is a proportion of equity and debt that fulfills the company's objective. CHARACTERISTICS OF OPTIMAL CAPITAL STRUCTURE • Optimal capital structure is a relationship between debt and equity that is set up in such a way that it maximizes the per share value of the company. • Optimal capital structure maintains the financial stability of the organization. • The optimal capital structure considers the financial manager in which he determines the proportion of capital structure to equity in such a way that the financial risk remains low or which maintains the level of financial risk is less.• To achieve the optimal capital structure, the advantage of leverage offered by corporate tax is exploited to