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Regarding the issuance of new debt. (For Q5, you may round your answers to the nearest dollar.) 5a. What is the 2022 D/E ratio? 5b.
Regarding the issuance of new debt. (For Q5, you may round your answers to the nearest dollar.) 5a. What is the 2022 D/E ratio? 5b. The CFO has decided the debt ratio is NOT to be maintained. Going forward, the CFO has told the financial analysts to use a D/E ratio of 0.5 on all new financing. In other words, to finance the purchase of the assets (Q4) for this sales expansion, theyre to use the new ratio. What will be the debt-equity mix be in regard to financing the upcoming purchase? 5c. So how much new debt will be issued?
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