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Exercise 10-15 (Algo) Applying debt-to-equity ratio LO A2 Montclair Company is considering a project that will require a $570,000 loan. It presently has total liabilities

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Exercise 10-15 (Algo) Applying debt-to-equity ratio LO A2 Montclair Company is considering a project that will require a $570,000 loan. It presently has total liabilities of $185.000 and total assets of $655,000 1. Compute Montclair's (a) current debt-to-equity ratio and (b) the debt-to-equity ratio assuming it borrows $570,000 to fund the project 2. If Montclair borrows the funds does its financing structure become more or less risky? 1 Answer is not complete Choose Numerator 1 Choose Denominator Total abilities Total equity Debt-to-Equity Ratio $ 185.000 $ 385.000 0.48 $ 385,000 Montdar borrows the funds does its financing structure become more or less sky 1 (b) 2

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