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Dewey Col. Has total debt of $ 4 2 0 , 0 0 0 and stockholders' equity of $ 7 0 0 , 0 0

Dewey Col. Has total debt of $420,000 and stockholders' equity of $700,000. Dewey is seeking capital to fund an expansion. Dewey is planning to issue an additional $300,000 in common stock and is negotiating with a bank to borrow additional funds. The bank is requiring a debt-to-equity ratio of .75. What is the maximum additional amount Dewey will be able to borrow?

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