Montclair Company is considering a project that will require a $630,000 loan. It presently has total liabilities of $155,000 and total assets of $685,000. 1. Compute Montclairs (a) current debt-to-equity ratio and (b) the debt-to-equity ratio assuming it borrows $630,000 to fund the project. 2. If Montclair borrows the funds, does its financing structure become more or less risky?

Exercise 10-15 Applying debt-to-equity ratio LO A3 Montclair Company is considering a project that will require a $630,000 loan. It presently has total liabilities of $155,000 and total assets of $685,000. 1. Compute Montclair's (a) current debt-to-equity ratio and (b) the debt-to-equity ratio assuming it borrows $630,000 to fund the project. 2. If Montclair borrows the funds, does its financing structure become more or less risky? Choose Numerator: 1 Choose Denominator: Debt-to-Equity Ratio 1 1 1. (a) 1. (b) 2. If Montclair borrows the funds, does its financing structure become more or less risky