A firm's goal is to maintain a 75% debt-equity ratio.How much equity would be required if the results of a financial planning model indicate that the firm's assets will grow to $4 million?
A) $1.00 million
B) $1.71 million
C) $2.29 million
D) $3.00 million If debt is 75% as large as equity, then:
1) 75 equity = $4.0 million
Correct Answer:
Verified
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