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The first and foremost purpose of this book is to show the firm characteristics that affect financial structure. This clarifies the extent of debt and equity used in financing the firms´ activity and the sources available. Thus, it detailed and shed light on the private limited manufacturing companies´ financial structure,which is an ambiguous area. So far, various empirical studies show that, there are differences on financial structure of a firm as a result of industry, financial system, financial development and macroeconomic conditions. Many theories and empirical evidence on financial structure exists in the real world. Yet, there is still cloudy area and with no specific guidelines to assist financial managers in attaining efficient mixture of debt and equity and effective composition of different sources of finance.Thus, only clues and calculated judgment plus some understanding of financial theory and the financial system of the country are possible tool to be applied in facilitating how the financing mix does affect the firm´s performance and what are the obstacles the companies are facing in financial structure decision.

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I was born in June 25, 1985. Graduated BA Degree in Cooperative (Accounting and Auditing) from Haramaya University in July 8,2006 with honor of distiniction. Msc Degree in Finance and Investment graduated from Mekelle University in Julay3,2010 with honor of distiniction.Working in Mekelle University as Lecturer of accounting and finance

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