Question
ABC Inc. has total assets at $7,450,000, with total debt amount at $1,860,000. The manager wants to establish a debt ratio of 55%. The size
ABC Inc. has total assets at $7,450,000, with total debt amount at $1,860,000. The manager wants to establish a debt ratio of 55%. The size of the firm does not change. How much debt must the company add to achieve the target debt ratio?
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Public Finance and Public Policy
Authors: Jonathan Gruber
4th edition
1429278455, 978-1429278454
