Question: Beranek Corp has $ 8 1 0 , 0 0 0 of assets ( which equal total invested capital ) , and it uses no

Beranek Corp has $810,000 of assets (which equal total invested capital), and it uses no debt-it is financed only with common equity. The new CFO wants employ enough debt to raise the total debt to total capital ratio to 35%, using the proceeds from borrowing to buy back common stock at its book value. Hov much must the firm borrow to achieve the target debt ratio?
a. $283,500
b. $141,750
c. $600,000
d. $526,500
e. $1,093,500
 Beranek Corp has $810,000 of assets (which equal total invested capital),

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