Last year, Arbor Corporation reported the following: Balance Sheet Total Assets Total Liabilities Total Shareholders' Equity...

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Last year, Arbor Corporation reported the following: Balance Sheet Total Assets Total Liabilities Total Shareholders' Equity $ 1,070,000 680,000 $ 390,000 This 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 2.0 or less. Required: 1. Calculate Arbor's current debt-to-equity ratio. 2. 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. Last year, Arbor Corporation reported the following: Balance Sheet Total Assets Total Liabilities Total Shareholders' Equity $ 1,070,000 680,000 $ 390,000 This 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 2.0 or less. Required: 1. Calculate Arbor's current debt-to-equity ratio. 2. 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.