Capital structure is important since it can impact a company's stability while conducting business. Here are some of the other reasons why it matters:1. A sound capital structure offers better potential to increase the company's valuation.2. A good capital structure ensures that the company has sufficient funds available to be used effectively. 3. It can prevent under or over-capitalization.4. A company can increase its profits through a well-planned capital structure5. It helps in maximizing shareholders’ capital and minimizes the cost of the capital.6. With a good capital structure, companies can enjoy the flexibility of raising or reducing debt capital depending on the business need.