One of the responsibilities of a Financial Manager is to determine the appropriate capital structure of the company. To illustrate, analyze the figure below: Sample Capital Structure - 100% 75% 50% 25% 0% Equity Assets Liabilities 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?
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