Question
Bostian, Inc. has total assets of $570,000. Its total debt outstanding is $185,000. The Board of Directors has directed the CFO to move towards a
Bostian, Inc. has total assets of $570,000. Its total debt outstanding is $185,000. The Board of Directors has directed the CFO to move towards a debt-to-assets ratio of 55%. How much debt must the company add or subtract to achieve the target debt ratio?
Select the correct answer.
a. $128,612
b. $128,724
c. $128,556
d. $128,668
e. $128,500
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Managerial Accounting for Managers
Authors: Eric Noreen, Peter Brewer, Ray Garrison
3rd edition
78025427, 978-0077736460, 007773646X, 978-0078025426
