Last year, Spruce Company reported the following:

BALANCE SHEET
Total Assets	$ 990,000
Total Liabilities	690,000
Total Shareholders' Equity	$ 300,000

This year, Spruce is considering whether to issue more debt to fund a $695,000 project or to issue additional shares of common stock. Both options will bring in exactly $695,000. Spruce's current debt contracts contain a debt covenant that requires it to maintain a debt-to-equity ratio of 2.59 or less.

Required:

1. Calculate Spruce's current debt-to-equity ratio.
2. Calculate Spruce's debt-to-equity ratio assuming it funds the project using additional debt.
3. Calculate Spruce's debt-to-equity ratio assuming it funds the project by issuing common stock.