Your firm has tangible assets of $103.4 million. You are planning to acquire a firm that is half your firm’s size. You have bonds with a merger & acquisition covenant that requires the combined firm to have a minimum ratio of net tangible assets to debt of 1.7:1. Your firm has a ratio of 2:1 and the target firm has a ratio of 1.2:1. Can you acquire this firm (and thus take on more debt) without violating your covenant?