Question: Montclair Company is considering a project that will require a $530,000 loan, It presently has total liabilities of $205,000 and total assets of $635,000 1.

 Montclair Company is considering a project that will require a $530,000

Montclair Company is considering a project that will require a $530,000 loan, It presently has total liabilities of $205,000 and total assets of $635,000 1. Compute Montclair's (a) current debt-to-equity ratio and (b) the debt-to-equity ratio assuming it borrows $530,000 to fund the project 2. If Montclair borrows the funds, does its financing structure become more or less risky? Choose Numerator: 1 Choose Denominator: 1 Debt-to-Equity Ratio 1. (a) ! 1. (b) / If Montclair borrows the funds, does its financing structure become more 2 or less risky

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