There lot of types of capital structure. The modern theory of capital structure began with the famous proposition of Modigliani and Miller that described the conditions of capital structure irrelevance. The financial crisis during 2008 and 2009 forced financial economists to look critically at capital structure theory because the problems faced by many companies stemmed from their financing policies. The first of capital structure theory is trade-off theory. In contrast to dividends, interest paid on debt reduces the firm’s taxable income. Debt also increases the probability of bankruptcy. Trade-off theory suggests that capital structure reflects a trade-off between the tax benefits of debt and the expected costs of bankruptcy. Although trade-off theory predicts that the marginal tax benefit of debt should be equal to the marginal expected bankruptcy cost, the empirical evidence is mixed. Some researchers argue that the former is greater than the latter because direct bankruptcy costs are small and the level of debt is below optimal. Additionally, including personal taxation in the basic model can reduce the tax advantage of debt because tax rates on the return from equity such as dividends or capital gain are often reduced. The second capital structure theory is pecking order theory. The researcher found the key element of pecking order theory is asymmetric information between firm’s insiders and outsiders. The empirical evidence on pecking order theory is mixed. In the pecking order theory also have extension with different type of asymmetric information. The third is signaling. In the pecking order model, good quality firms have to use internal funds to avoid adverse selection problems and losing value. These firms cannot signal their quality by changing their capital structure. The following section discusses models in which capital structure serves as a signal