Question: Montclair Company is considering a project that will require a $650,000 loan. It presently has total abilities of $15,000 and total assets of $695.000 1.
Montclair Company is considering a project that will require a $650,000 loan. It presently has total abilities of $15,000 and total assets of $695.000 1. Compute Montclair's (a) current debt-to-equity ratio and (b) the debt-to-equity ratio assuming it borrows $650,000 to fund the project. 2. If Montclar borrows the funds does its financing structure become more or less risky? Choose Numerator 1 Choose Denominator 1 Dobt to Equity Ratio 1 (a) 7 1 (6) 1 2 If Montclair borrows the funds, doos its financing structure become more or less risky
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