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Meyer Inc's Total Invested Capital Is $610,000,and Its Total Debt

Question 96

Multiple Choice

Meyer Inc's total invested capital is $610,000,and its total debt outstanding is $185,000.The new CFO wants to establish a total debt to total capital ratio of 55%.The size of the firm will not change.How much debt must the company add or subtract to achieve the target debt to capital ratio?


A) $164,045
B) $150,500
C) $115,885
D) $165,550
E) $185,115

Correct Answer:

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