Exercise 10-16 (Algo) Applying debt-to-equity ratio LO A2 Montclair Company is considering a project that will require a $540,000 loan. It presently has total liabilities of $200,000 and total assets of $640,000 1. Compute Montclair's (a) current debt-to-equity ratio and (b) the debt-to-equity ratio assuming it barrows $540,000 to fund the project 2. If Montclair borrows the funds, does its financing structure become more or less risky? Choose Numerator: 1 Choose Denominator 1 Debt-to-Equity Ratio 1. (a) 1. (b) 2 of Montclair borrows the funds, does its financing structure become more or less risky