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The firm is considering an expansion that would involve (Adjusting a firm's capital structure) Curley's Fried Chicken Kitchen operates two southern cooking restaurants in St.
The firm is considering an expansion that would involve (Adjusting a firm's capital structure) Curley's Fried Chicken Kitchen operates two southern cooking restaurants in St. Louis, Missouri, and has the following financial structure: :: raising an additional $2.0 million. a. What are the firm's debt ratio and interest-bearing debt ratio in its present capital structure? b. If the firm wants to have a debt ratio of 50 percent, how much equity does the firm need to raise in order to finance the expansion? Data Table Accounts payable $100,000 Short-term debt 400,000 Current liabilities $500,000 Long-term debt 2,000,000 Owner's equity 1,500,000 $4,000,000 (Click on the icon in order to copy its contents into a spreadsheet.) Total
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