What is the main consideration when evaluating the impact of using debt in the capital structure?

When evaluating the impact of using debt in the capital structure, the primary consideration is achieving the highest return on equity for existing shareholders. This is because leveraging the company with debt can potentially increase the returns on equity when the investment generates returns greater than the cost of the debt.

Utilizing debt can amplify the company's earnings, and if those earnings exceed interest expenses, the equity holders benefit from a higher return on their investments. Leverage has the potential to increase the overall return on equity due to the fact that equityholders receive a proportion of the earnings while the debt remains a fixed obligation that doesn't proportionally increase with profits.

In contrast, options related to maximizing shareholder fees, reducing employee headcount, and minimizing operational costs do not primarily focus on the investor’s return or the dynamics of capital structure. While operational efficiency and costs are important for overall company health, they do not directly drive the analysis of how debt impacts the equity returns as leverage does.