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What is the maximum additional amount company will borrow

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Reference no: EM131912562

Question - Company has total debt of $252,000 and stockholders' equity of $420,000. Company is seeking capital to fun an expansion. Company is planning to issue an additional $180,000 in common stock, and is negotiating with a bank to borrow additional funds. The bank requires a maximum debt ration of .75. What is the maximum additional amount Company will be able to borrow after the common stock is issued.

Reference no: EM131912562

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