PBB is a leading tuition provider of accountancy training courses in A-land. PBB is listed on the local stock exchange, and the company is seeking to grow revenue by expanding the range of online courses it offers to students. If the expansion goes ahead, expectations are that the share price will rise to A$6. To enable it to do this it needs to invest A$50 million in new information technology systems. It is considering raising the finance through bank borrowings from its primary bank for a ten-year term at an interest rate of 5%. PBB has a covenant on an existing loan as follows: Debt to capital ratio (as measured by long term debt divided by long term debt plus equity) should not exceed 45% based on market values. PBB is currently financed as follows: Share capital 50 million ordinary shares with a nominal value of A$1 each Bank borrowings A$150 million If bank borrowings are used to fund the new investment, how do I get the debt to capital ratio of 40%? Please show workings>