Question
A firm's goal is to maintain a 75% debt-equity ratio. How much equity would be required if the results of a financial planning model indicate
A firm's goal is to maintain a 75% debt-equity ratio. How much equity would be required if the results of a financial planning model indicate that the firm's assets will grow to $4 million?
A. $1.00 million B. $1.71 million C. $2.29 million D. $3.00 million
How is the answer C?
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Multinational Business Finance
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
10th Edition
0201785676, 9780201785678
