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Business, 21.04.2020 18:06 jpimentel2021

Last year, Arbor Corporation reported the following: Balance Sheet Total Assets $ 1,280,000; Total Liabilities 820,000; Total Shareholders' Equity $ 460,000This year, Arbor is considering whether to issue more debt to fund a $100,000 project or to issue additional shares of common stock. Both options will bring in exactly $100,000. Arbor's current debt contracts contain a debt covenant that requires it to maintain a debt-to-equity ratio of 2.00 or less.1. Calculate Arbor's current debt-to-equity ratio2. Calculate Arbor's debt-to-equity ratio assuming it funds the project using additional debt.3. Calculate Arbor's debt-to-equity ratio assuming it funds the project by issuing common stock

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Last year, Arbor Corporation reported the following: Balance Sheet Total Assets $ 1,280,000; Total L...
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