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Massimo Corp has $665,000 of assets, and it uses no debt--it is financed only with common equity. The new CFO wants to employ enough debt
Massimo Corp has $665,000 of assets, and it uses no debt--it is financed only with common equity. The new CFO wants to employ enough debt to raise the debt/assets ratio to 45%, using the proceeds from borrowing to buy back common stock at ts book value. How much must the firm borrow to achieve the target debt ratio? $301,240 $266,000 $304,520 $299,.250 $292,700
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