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The Pierce Company with zero debt and $971,807 equity wants to borrow enough money to raise their debt ratio to 0.35. They are not planning
The Pierce Company with zero debt and $971,807 equity wants to borrow enough money to raise their debt ratio to 0.35. They are not planning any changes to their total assets but will use the proceeds of the debt issue to repurchase shares and reduce their equity. To accomplish this, how much should they borrow to the nearest round dollar?
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