Which method is most commonly used to enhance a company's capital structure?

Enhancing a company’s capital structure primarily focuses on the optimal mix of debt and equity financing to improve financial stability and reduce the overall cost of capital. Debt refinancing is a strategic method utilized for this purpose, as it allows a company to renegotiate the terms of its existing debt obligations to achieve lower interest rates or extend repayment periods. This can lead to improved cash flow, an enhanced credit profile, and a more manageable debt burden, thereby strengthening the overall capital structure.

While public relations campaigns, cost-cutting measures, and market research initiatives can be valuable in different contexts, they do not directly address the capital structure. Public relations campaigns are mainly focused on brand image and customer engagement, cost-cutting measures could improve profitability but do not fundamentally alter financing structures, and market research initiatives aim to understand consumer behavior and market trends without influencing financing decisions. Therefore, the most relevant and effective method for enhancing a company's capital structure in the context of financial management is indeed debt refinancing.