Charter enterprises currently has $1.8 million in total assets and is totally equity finances. It is contemplating a change in its capital structure. Compute the amount of debt and equity that would be outstanding if the firm were to shift to each of the following debt ratios (note: the amount of total assets would not change) Is there a limit to the debt ratios value?

Debt Ratio

Debt Equity

10% _____ ______

20% _______ _______

30% ________ ________

40% __________ _________

50% ________ _________

60% ________ __________

70% _________ __________

80% __________ ___________

90% __________ ____________