Beranek corp. has 410000 of assets and it uses no debt-it, Ask an Expert

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Beranek Corp. has $410,000 of assets, and it uses no debt-it is financed only with common equity. 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?

$155,800

$164,000

$172,200

$180,810

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Basic Finance, Finance

Category:- Basic Finance
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