On December 31, 2017, FFS Inc. has total liabilities of $840,500 and total equity of $1,446,000. The company needs to raise additional funds through debt and equity. The company will issue 5,000 shares of common stock at $15 per share and in addition it intends to borrow as much as it can from Bank of Stackwood. Bank of Stackwood requires a maximum debt-to-asset ratio of 0.4.

What is the maximum additional amount that FFS Inc. can borrow after the additional stock is issued?

Select one:

a. $173,500

b. $104,100

c. $123,500

d. $0 (the company already exceeds the 0.4 debt-to-asset ratio)