Hutchinson Corporation Has Zero Debt¾it Is Financed Only with Common

Hutchinson Corporation has zero debt¾it is financed only with common equity.Its total assets are $410, 000.The new CFO wants to employ enough debt to bring the debt/assets ratio to 40%, using the proceeds from the borrowing to buy back common stock at its book value.How much must the firm borrow to achieve the target debt ratio?

A) $155, 800
B) $164, 000
C) $172, 200
D) $180, 810
E) $189, 851