Assume a Firm Wants to Hold Its Current Long-Term Debt-To-Equity

Assume a firm wants to hold its current long-term debt-to-equity ratio constant at 0.55 and its payout ratio constant at 35%.The firm neither issues nor repurchases shares.If the firm generates $326,000 of net income,what is the maximum amount that the firm can increase its long-term debt?

A) $116,545
B) $95,355
C) $122,615
D) $0