P10-1 (Static) Analyzing the Use of Debt LO 10-1, 10-6 Last year, Arbor Corporation reported the following: Total Assets Balance Sheet Total Liabilities Total Shareholders' Equity $800,000 500,000 $300,000 This year, Arbor is considering whether to issue more debt to fund a $100,000 project or to issue additional shares of common stock. Both options will bring in exactly $100,000. Arbor's current debt contracts contain a debt covenant that requires it to maintain a debt- to-equity ratio of 2.0 or less. Required: 1. Calculate Arbor's current debt-to-equity ratio. (Round your answer to 2 decimal places.) Current debt-to-equity ratio 2. Calculate Arbor's debt-to-equity ratio assuming it funds the project using additional debt. (Round your answer to 2 decimal places.) Debt-to-equity ratio 3. Calculate Arbor's debt-to-equity ratio assuming it funds the project by issuing common stock. (Round your answer to 2 decimal places.) Debt-to-equity ratio