i) Tuah Restaurant operates two branches in Klang Valley, and has the following financial
structure:
		RM
	Accounts payable	100,000.00
	Short term debt	400,000.00
	Current liabilities	500,000.00
	Long-term debt	2,000,000.00
	Owner's equity	1,500,000.00
	TotaL	4,000,000.00
The restaurant is considering an expansion that would involve raising an additional RM2
million.
Required:
a) What are the firm's debt ratio and interest-bearing debt ratio for its present capital structure? (3 Marks)
b) If the firm wants to have a debt ratio of 50 percent, how much equity does the firm need
to raise to finance the expansion. (3 Marks)

VERY URGENT