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Beranek Corp. has $410,000 of assets, and it uses no debt it is financed only with common equity. The new Co wants to employ enough
Beranek Corp. has $410,000 of assets, and it uses no debt it is financed only with common equity. The new Co wants to employ enough debt to bring the debt/assets ratio to 40%, using the proceeds from the borrowing to buy back common stock at its book value How much must the firm borrow to achieve the target debt ratio? O A 5155,800 B. $172,000 C. $164,000 D. $184,500
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