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Capital structure is a major topic in corporate financial management. The way a company finances itself over time becomes apparent by looking at their balance
Capital structure is a major topic in corporate financial management. The way a company finances itself over time becomes apparent by looking at their balance sheet. In the Pacioli Company assets of $299,000 were balanced by $231,000 of liabilities (77.3%) and $68,000 of equity (22.7%). So over time, Pacioli tends to finance itself borrowing 77% and 23% owner investment. What is the optimal mix?
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