Massachusetts Burger is a national chain that, due to its success, has decided to expand. MassBurger, as it is also known, is currently unleveraged and has assets valued at 3,250,000. Suppose the asset size increases by a factor of 5.21 (for example, if the factor is 10, it means that the amount of assets will be 10 times as large), with all expansion funds coming from debt capital. 

What must be the percentage drop in assets before all equity is wiped out?

Answer rating: 100% (QA)

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