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What is tt new debt-to-equity ration

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Tundra Textiles (TT) has assets of $100 million (including $10 million in cash) and debt of $20 million. If TT borrows an additional $10 million to repurchase $20 million on stock, what is TT's new debt-to-equity ration?

The answer is 30/60= 0.5

Can you please show me how to get this answer step by step?

Reference no: EM131892235

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