... achieve the lowest cost sources of financing, thus, with increasing in interest rates and as a consequence increasing in cost of financing through bonds, they eliminate this way of financing. ... as; Pecking Order Theory, Free Cash Flow Theory, Agency Theory and Market Timing Theory. Most of these theories are based on the company's internal structure and the impact of internal ... companies’ financial managers is making decisions about the appropriate combination of financial resources and determining the composition of capital structure which is the combination of stocks...