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Assume a firm wants to hold its current long - term debt - to - equity ratio constant at 0 . 5 5 and its

Assume a firm wants to hold its current long-term debt-to-equity ratio constant at 0.55 and its payout ratio constant at 35%. The firm neither issues nor repurchases shares. If the firm generates $326,000 of net income, what is the maximum amount that the firm can increase its long-term debt?
Multiple Choice
$122,615
$116,545
$0
$95,355

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