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 ofStackwood 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.$123,500

b.$104,100

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

d.$173,500