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The current balance sheet of Gamma reports total assets of $30 million, total liabilities of $3 million, and owners' equity of $27 million. Gamma is
The current balance sheet of Gamma reports total assets of $30 million, total liabilities of $3 million, and owners' equity of $27 million. Gamma is considering several financing possiblities in order to expand operations. Each question based on this data is independent of any others. What is the maximum amount Gamma can borrow and not exceed a debt ratio of 0.2 ? Multiple Choice $5.000,000 $800,000 $3,750,000 $5,750,000
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