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PPT Corp has $550,000 of assets (which equal total invested capital), and it uses no debt-it is financed only with common equity. The new CFO

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PPT Corp has $550,000 of assets (which equal total invested capital), and it uses no debt-it is financed only with common equity. The new CFO wants to employ enough debt to raise the total debt to total capital ratio to 30%, using the proceeds from borrowing to buy back common stock at its book value. How much must the firm borrow to achieve the target debt ratio? $215,000 $175,000 $250,000 O $165,000 O $255,500

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