$($Adjusting a firm's capital structure$)$ Curley's Fried Chicken Kitchen operates two southern cooking restaurants in St$.$ Louis, Missouri, and has the following financial structure: $$ The firm is considering an expansion that would involve raising an additional $$2\mathrm{.}6$ million.

a$.$ What are the firm's debt ratio and interest$-$bearing debt ratio in its present capital structure?

b$.$ If the firm wants to have a debt ratio of $50$ percent, how much equity does the firm need to raise in order to finance the expansion?

a$.$ Data table

The

b$.$

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