Bostian, Inc. has total assets of $650,000. Its total debt outstanding is $185,000. The Board of Directors has directed the CFO to move towards a debt-to-assets ratio of 55%. How much debt must the company add or subtract to achieve the target debt ratio? Select the correct answer. a. $172,308 b. $172,436 c. $172,500 d. $172,372 e. $172,244
Bostian, Inc. has total assets of $650,000. Its total debt outstanding is $185,000. The Board of Directors has directed the CFO to move towards a debt-to-assets ratio of 55%. How much debt must the company add or subtract to achieve the target debt ratio? Select the correct answer. a. $172,308 b. $172,436 c. $172,500 d. $172,372 e. $172,244
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Bostian, Inc. has total assets of $650,000. Its total debt outstanding is $185,000. The Board of Directors has directed the CFO to move towards a debt-to-assets ratio of 55%. How much debt must the company add or subtract to achieve the target debt ratio?
Select the correct answer.
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