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On Jan. 1, 2021, Yellow Corp. is valuing its equity so that it can acquire additional financing from the bank. It gathered the following current
On Jan. 1, 2021, Yellow Corp. is valuing its equity so that it can acquire additional financing from the bank. It gathered the following current values: ASSETS Current Noncurrent Land* Building Equipment Long-term Investments LIABILITIES AND EQUITY P 2,000,000 Current Liabilities P 1,500,000 Noncurrent Liabilities 10,000,000 ? 3,000,000 7,000,000 4,000,000 *The land account includes three separate lots with the following details: Original Annual Land Acquisition Date Purchase Price Appreciation Rate Jan. 1, 2010 P 2,100,000 10% B Dec. 31, 2013 1,620,000 8% Jan. 1, 2015 1,800,000 9% Basing on current values, Yellow Corp. is required to have a maximum of 45% debt ratio upon the approval of the bank loan. What is the maximum amount that the bank will lend Yellow? Round answer to the closest thousands of pesos
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