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4 Exercise 10-15 (Algo) Applying debt-to-equity ratio LO A2 Montclair Company is considering a project that will require a $680,000 loan. It presently has total

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4 Exercise 10-15 (Algo) Applying debt-to-equity ratio LO A2 Montclair Company is considering a project that will require a $680,000 loan. It presently has total liabilities of $130,000 and total assets of $710,000 1. Compute Montclair's () current debt-to-equity ratio and (b) the debt-to-equity ratio assuming it borrows $680,000 to fund the project 2. If Montclair borrows the funds, does its financing structure become more or less risky? 4:05:13 poed Choose Numerator: 1 Choose Denominator: Debt-to-Equity Ratio BOOK 1 0 1. (a) 1. (b) 2 erences if Montclair borrows the funds, does its financing structure become more or less risky

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