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Green Curry Kitchen operates two restaurants in Hobart and Launceston, Tasmania, and has the following financial structure: Account payables $100,000 Short-term debt $400,000 Current liabilities
Green Curry Kitchen operates two restaurants in Hobart and Launceston, Tasmania, and has the following financial structure: Account payables $100,000 Short-term debt $400,000 Current liabilities S500,000 Long-term debt $2,000,000 $1,500,000 Owner's equity Total $4,000,000 The firm is considering an expansion that would involve raising an additional $2 million. What are the firm's debt ratio and debt-to-equity ratio in its present capital structure? a. b. If the firm wants to have a debt ratio of 50%, how much equity does it need to raise in order to finance the expansion
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