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Global Foods Ltd. plans to enter a new market by opening ten new outlets. The expansion cost is estimated at $50 million, which will be

  • Global Foods Ltd. plans to enter a new market by opening ten new outlets. The expansion cost is estimated at $50 million, which will be financed through $15 million in retained earnings and $35 million in debt. Determine the new debt-to-equity ratio if the company’s current equity is $60 million.

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