Montclair Company is considering a project that will require a $$500,000$ loan. It presently has total liabilities of $$220,000$ and total assets of $$620,000.$

$1.$ Compute Montclair$$s $($a$)$ current debt$-$to$-$equity ratio and $($b$)$ the debt$-$to$-$equity ratio assuming it borrows $$500,000$ to fund the project.

$2.$ If Montclair borrows the funds, does its financing structure become more or less risky?