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2. Green Curry Kitchen operates two restaurants in Hobart and Launceston, Tasmania, and has the following financial structure: Account payables $100,000 Short-term debt $400,000 Current
2. Green Curry Kitchen operates two restaurants in Hobart and Launceston, Tasmania, and has the following financial structure: Account payables $100,000 Short-term debt $400,000 Current liabilities $500,000 Long-term debt $2,000,000 Owner's equity $1,500,000 Total $4,000,000 The firm is considering an expansion that would involve raising an additional $2 million. a. What are the firm's debt ratio and debt-to-equity ratio in its present capital structure? b. If the firm wants to have a debt ratio of 50%, how much equity does it need to raise in order to finance the expansion
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