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Didi works as a sales manager for a pharmaceutical sales company in Selangor. He plans to purchase a new high-tech marketing display that would enable
Didi works as a sales manager for a pharmaceutical sales company in Selangor. He plans to purchase a new high-tech marketing display that would enable him to access up-to-date information and research statistics on the pharmaceuticals that his company sells. He believes that this high-tech display will significantly increase the sales revenue of the products he sells. The only problem is that the high-tech display will cost RM 50,000. If he proposes the company to purchase this equipment using debt, it will increase the company's debt ratio from 20% to 58%. Didi is aware that his company closely monitors the debt ratio and has a policy that the company must maintain a ratio below 55%. Required: Should Didi propose to his company to purchase the above equipment? Explain
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