Relative Levels of Equity and Debt Affect Risk and Cash Flow.   This Has Substantial Impact on Amount Investors Will Pay.     Matt Stelzman notes in the Chattanooga News TimesFreePress that the question that often arises in connection with a business valuation is whether the valuator should use the company’s actual capital structure or its anticipated future capital structure. A valuator might also use a prospective buyer’s capital structure or the company’s “optimal” capital structure. Which method is best depends on several factors, including the type of interest being valued and the valuation’s purpose. More: