The City of Hays currently pays $7,234,382 in debt service annually with annual revenues totally $67,989,973. If the City’s benchmark debt ratio is 15%, can the City issue more debt? Why? If so, how much additional debt can the City carry? Assume an annual interest rate of 6 percent and a twenty five-year maturity for the debt.

Answer rating: 100% (QA)

Revenues 67989973 Current liabilities 7234382 Benchmark debt ratio 1... View the full answer