Montclair Company is considering a project that will require a $$570,000$ loan. It presently has total liabilities of $$185,000$ and total

assets of $$655,000.$

Compute Montclair's $($a$)$ current debt$-$to$-$equity ratio and $($b$)$ the debt$-$to$-$equity ratio assuming it borrows $$570,000$ to fund the

project.

If Montclair borrows the funds, does its financing structure become more or less risky?