The CFO of a company decides to maintain the capital structure as 1/2. The finance raised from owners and shareholders is Rs. 300 crore. How much debt financing does he need?

Option 1: 600 crore -> This would mean debt is twice the equity (600/300 = 2), giving a debt-to-equity ratio of 2:1, not 1:2.

Option 2: 500 crore -> This would result in a debt-to-equity ratio of 500/300 = 5/3, which doesn't match the required 1/2.

Option 3: 250 crore -> This would give a debt-to-equity ratio of 250/300 = 5/6, which is not equal to 1/2.

Option 4: 150 crore -> This gives a debt-to-equity ratio of 150/300 = 1/2, which matches the required capital structure.

Hence, Option 4: 150 crore -> Capital structure of 1/2 means Debt-to-Equity ratio = 1/2. With equity of Rs. 300 crore, debt needed = 300 × (1/2) = Rs. 150 crore -> correct