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Various capital structures Charter Enterprises currently has $1 million in total assets and is totally equity financed. It is contemplating a change in its capital
Various capital structures Charter Enterprises currently has $1 million in total assets and is totally equity financed. It is contemplating a change in its capital structure. Compute the amount of debt and equity that would be outstanding if the firm were to shift to each of the following debt ratios: 10%, 20%, 30%, 40%, 50%, 60%, and 90%. (Note: The amount of total assets would not change.) Is there a limit to the debt ratios value?
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