Question: Hakeem Corporation has zero debt - it is financed only with common equity. Its total assets are $ 5 4 0 , 0 0 0

Hakeem Corporation has zero debt-it is financed only with common equity. Its total assets are $540,000. The new CFO wants to employ enough debt to bring the debt/assets ratio to 38%, using the proceeds from the borrowing to buy back common stock at its book value. How much must the firm borrow to achieve the target debt ratio?
. $334,800
b. $102,600
c. $391,304
d. $205,200
e. $745,200
Hakeem Corporation has zero debt-it is financed only with common equity.

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