Ferguven Theatres Inc operates specialty filin format theatres that display inages of greater size and higher quality resolution. Ferguson is considering expandire its thestres in China and needs to caise $497 million in additional debt. However, the contoany is concerned about remaining compliant with its existing debt to equity ratio covenant of 1.10.1 and the net debt as a percentage of capitalization ratio of 500 . For the fiscal year ended December 31, 2020, an extract of the statement of financial position for Ferbuson Theatres shomed the followirg information total interest-beseing debt of $753 millian, a cash balance of $110 million, and thareholders' equity of $1,000 million. Determine whether Ferguson Theatres Inc could borrow $497 million and remain in compliance with the bank covenants. (Round debt fo equity rotio to 2 decimal places, es. 1.25 and net debt es a pertentoage of total copitalization to 0 decimal ploces, es. 25\%) Debe to Equity Net Debt as a Percentage of Total Capitalization Ferguson Thestres torrow \$497 Milion