A company is required to maintain a debt-to-equity ratio of 2:1. The company has $2 million in
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A company is required to maintain a debt-to-equity ratio of 2:1. The company has $2 million in debt and $1 million in equity. What is the maximum amount of new debt the company can take on while still complying with the debt-to-equity ratio requirement? Assume no change in the equity amount.
Related Book For
Fundamentals Of Financial Management
ISBN: 9780273713630
13th Revised Edition
Authors: James Van Horne, John Wachowicz
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