You are newly appointed CFO in a listed Mid-Sized company in the paper products supplier industry. Your clients are retailers such as Costco, Walmart and etc. Your company financial performance is stable, with ROE is around 12%, which is above industry average; EBIT (Operating Income) interest coverage is sufficient, while company has some seasonality in terms of sales, thus has impact on cash flows. Long term capital financing the company bond credit rating is A-, which means easy to raise debt, cost is lower than short term borrowings.
Identify the capital structure issues that CFO must address and explain the effects and significance of these issues