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On December 31, 2015, Sveva Inc. has liabilities of $652,000 and total equity of $168,000. The Company needs to raise additional funds debt and equity.
On December 31, 2015, Sveva Inc. has liabilities of $652,000 and total equity of $168,000. The Company needs to raise additional funds debt and equity. The Company will issue 33,000 shares of common stock at $7 per share and in addition it intends to borrow as much as it can from Bank of switzerville. Bank switzervilla requiresa maximum debt-to-asset ratio of 0.7. What is the maximum additional amount that sveva can borrow after the additional stock is issued?
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