Montclair Company is considering a project that will require a $500,000 loan. It presently has total liabilities of $220,000, and total assets of $620,000. 1. Compute Montclairs (a) present debt-to-equity ratio and (b) the debt-to-equity ratio assuming it borrows $500,000 to fund the project.

	Choose Numerator:	/	Choose Denominator:
	Total liabilities	/	Total equity	Debt-to-Equity Ratio
(a)	$220,000	/	$400,000		0.55
(b)	$720,000	/			0