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Arigato Inc. has a current ratio of 3.0 and a debt to asset ratio of 0.85. Arigato Inc. is buying a piece of real estate
Arigato Inc. has a current ratio of 3.0 and a debt to asset ratio of 0.85. Arigato Inc. is buying a piece of real estate and will finance the purchase with a long-term loan (assume the real estate's value will remain constant into perpetuity). Would you suggest a 15-year mortgage or a 30-year mortgage (assume same interest rate on both choices)? State your answer and explain your choice in 3 to 5 sentences
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