Question $5$

CCC Corp has $$725,500$ of assets and it uses no debt$-$it is financed only with common equity. The new CFO wants to employ enough debt to raise the total debt to asset ratio to $42\%,$ using the proceeds from borrowing to buy back common stock at its book value. How much must the firm borrow to achieve the target debt ratio?

a$.$ $$419,680$

b$.$ $$392,160$

c$.$ $$268,320$

d$.$ $$350,880$

e$.$ $$304,710$