$($Analyzing capital structure$)($Related to Checkpoint $4\mathrm{.}2$ on page $123)$ The liabilities and stockholders$$ equity for Campbell Industries are as follows:

Accounts payable $ $500,000$

Notes payable $250,000$

Total current liabilities $ $750,000$

Long$-$term debt $$1,200,000$

Total common stockholders$$ equity $$5,000,000$

Total liabilities and stockholders$$ equity $$6,950,000$

a$.$ What fraction of the firm$$s assets does the firm finance using debt $($liabilities$)?$

b$.$ If Campbell were to purchase a new warehouse for $$1$ million and finance it all using long$-$term debt, what would happen to the firm$$s debt ratio?