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Business, 06.12.2019 03:31 teneciastclair7

Montclair company is considering a project that will require a $500,000 loan. it presently has total liabilities of $220,000, and total assets of $620,000. 1. compute montclair’s (a) present debt-to-equity ratio and (b) the debt-to-equity ratio assuming it borrows $500,000 to fund the project.

choose numerator: / choose denominator:
total liabilities / total equity debt-to-equity ratio
(a) $220,000 / $400,000 0.55
(b) $720,000 / 0

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