DIRECTIONS. Analyze the situation and answer the question on a separate sheet of раper. One of the VP for Finance of the Financial Manager is to determine the appropriate capital structure of the...


DIRECTIONS. Analyze the situation and answer the question on a separate sheet of<br>раper.<br>One of the VP for Finance of the Financial Manager is to determine the<br>appropriate capital structure of the company. To illustrate, show/draw the figure<br>below: Sample Capital Structure<br>100%<br>75%<br>Equity<br>50%<br>Assets<br>25%<br>Liabilities<br>0%<br>Total Assets<br>Total Structure<br>- In the figure above, the total assets are financed by 60% debt and 40% equity.<br>Accordingly, the capital structure is 60% debt and 40% equity.<br>Question:<br>Do you think there is an ideal mix of debt and equity across corporations?<br>Elaborate your answer.<br>

Extracted text: DIRECTIONS. Analyze the situation and answer the question on a separate sheet of раper. One of the VP for Finance of the Financial Manager is to determine the appropriate capital structure of the company. To illustrate, show/draw the figure below: Sample Capital Structure 100% 75% Equity 50% Assets 25% Liabilities 0% Total Assets Total Structure - In the figure above, the total assets are financed by 60% debt and 40% equity. Accordingly, the capital structure is 60% debt and 40% equity. Question: Do you think there is an ideal mix of debt and equity across corporations? Elaborate your answer.

Jun 07, 2022
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