Montclair Company is considering a project that will require a $$580,000$ loan. It presently has total liabilities of $$180,000$

and total assets of $$660,000.$

Compute Montclair's $($a$)$ current debt$-$to$-$equity ratio and $($b$)$ the debt$-$to$-$equity ratio assuming it borrows $$580,000$ to

fund the project.

If Montclair borrows the funds, does its financing structure become more or less risky?Montclair Company is considering a project that will require a $$580,000$ loan. It presently has total liabilities of $$180,000$

and total assets of $$660,000.$

Compute Montclair's $($a$)$ current debt$-$to$-$equity ratio and $($b$)$ the debt$-$to$-$equity ratio assuming it borrows $$580,000$ to

fund the project.

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