On December 31, 2015, Sveva Inc. has total liabilities of $652,000 and total equity of $168,000. The company needs to raise additional funds through 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 of Switzerville requires a maximum debt-to-asset ratio of 0.7. What is the maximum additional amount that Sveva can borrow after the additional stock is issued?

Select one:

a.

$83,700

b.

$265,654

c.

$0 (the limit has already been reached)

d.

$279,000