Shank Co. has a debt-to-asset ratio of 0.4 and $6,000,000 equity. Shank is seeking capital to fund
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- Shank Co. has a debt-to-asset ratio of 0.4 and $6,000,000 equity. Shank is seeking capital to fund a construction project costing $6,500,000 and is considering funding the project by both bank borrowings and additional common stock issuance. The current debt covenant requires Shank to fund any project by incurring a maximum of 30% debt. If Shank funds the project with the maximum permitted debt.
- Calculate the debt-to-equity ratio.
Related Book For
Real Estate Finance and Investments
ISBN: 978-0073377339
14th edition
Authors: William Brueggeman, Jeffrey Fisher
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