"Theories of Capital Structure" is a comprehensive guide that addresses the challenges investors face when selecting and adjusting their strategic financing structure. It particularly emphasizes the importance of an optimal capital structure, as many companies in Tanzania suffer from inadequate profits and high debt burdens, often leading to insolvency. The author, Ntogwa Bundala, examines the validity of three essential theories of capital structure: the static trade-off theory, the pecking order theory, and the agency cost theory, analyzing their relevance in the Tanzanian context. Additionally, the critical micro-factors that should be considered when choosing between debt and equity or a combination of both financing strategies are highlighted. This book provides valuable insights and practical approaches to improving companies' capital structure decisions.