Exercise 10-16 (Algo) Applying debt-to-equity ratio LO A2 Montciair Company is considering a project that will require a $620,000 loan. It presently has total liabilities of $160,000 and total assets of $680,000 1. Compute Montclair's (A) current debt-to-equity ratio and (b) the debt-to-equity ratio assuming it borrows $620,000 to fund the project. 2. If Montclair borrows the funds, does its financing structure become more or less risky