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Debt-equity choice is one of the most important decisions in financing policy. Studies on capital structure have made great contributions in understanding the behaviour of firms with respect to their choice among the use of debt or equity. The present study tries to find out the reasons why the choice of debt and equity differ from company to company. For that we have tried to use the financial instrument debt-equity ratio and taken the sample of 3 companies of three sector and the reasonsfatcat:rq6pdqmhf5hcxhlcio5wzzl5ji