Exercise 10-16 (Algo) Applying debt-to-equity ratio LO A2 Montclair Company is considering a project that will require a $560,000 loan. It presently has total liabilities of $190,000 and total assets of $650,000. 1. Compute Montclair's (a) current debt-to-equity ratio and (b) the debt-to-equity ratio assuming it borrows $560,000 to fund the project. 2. If Montclair borrows the funds, does its financing structure become more or less risky