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Chunky Cheese Pizza has $60 million in bonds payable. The bond agreement states that the debt to equity ratio cannot exceed 3.02. Chunkys total assets
Chunky Cheese Pizza has $60 million in bonds payable. The bond agreement states that the debt to equity ratio cannot exceed 3.02. Chunkys total assets are $200 million, and its liabilities other than the bonds payable are $90 million. The company is considering some additional financing through leasing.
Required:
1. Calculate total stockholders equity using the balance sheet equation.
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