"Capital is a limited resource in an economy and it is important that its use is costeffective. It is important that capital raising in enterprises and industries is rational and allows an appropriate capital structure with the highest returns, thus providing further sustainable economic development. Research into capital structure started several decades ago but, up to now, the precise identification of a company's optimal capital structure and the factors that determine the most appropriate capital structure are issues that have not been resolved. Based on research, the authors conclude, that during the 1995-2008 period, the total assets of Latvian enterprises have increased considerably, while the capital structure of Latvian enterprises has changed noticeably. Under the current changing economic conditions, one of the most important issues of decisions on capital structure is the adequate level of debt. Despite the use of debt increasing the financial risk of the enterprise, the raising of debt capital is crucial for the survival and development of the real sector of the economy and thus for the national economy as a whole. "

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