Meyer Inc's Assets Are $625,000, and Its Total Debt Outstanding

question 11

Multiple Choice

Meyer Inc's assets are $625,000, and its total debt outstanding is $185,000. The new CFO wants to establish a debt/assets ratio of 55%. The size of the firm does not change. How much debt must the company add or subtract to achieve the target debt ratio?

• A) $158,750
• B) $166,688
• C) $175,022
• D) $183,773
• E) $192,962

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