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Last year, Arbor Corporation reported the following: This year, Arbor is considering whether to issue more debt to fund a $100.000 project or to issue
Last year, Arbor Corporation reported the following: This year, Arbor is considering whether to issue more debt to fund a $100.000 project or to issue additional shares of common stock. Both options will bring in exactly $100,000. Arbor's current debt contracts contain a debt covenant that requires it to maintain a debt-to-equity ratio of 2.00 or less. Calculate Arbor's current debt-to-equity ratio. (Round your answer to 2 decimal places.) Current debt-to-equity ratio Calculate Arbor's debt-to-equity ratio assuming it funds the project using additional debt. (Round your answer to 2 decimal places.) Debt-to-equity ratio Calculate Arbor's debt-to-equity ratio assuming it funds the project by issuing common stock. (Round your answer to 2 decimal places.) Debt-to-equity ratio
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