Beranek Corp

question 20

Multiple Choice

Beranek Corp. has $410,000 of assets, and it uses no debt--it is financed only with common equity. The new CFO wants to employ enough debt to bring the debt/assets ratio to 40%, using the proceeds from the borrowing to buy back common stock at its book value. How much must the firm borrow to achieve the target debt ratio?

• A) $155,800
• B) $164,000
• C) $172,200
• D) $180,810
• E) $189,851

---

Definitions:

Gambling

The act of wagering money or something of value on an event with an uncertain outcome with the intent of winning additional resources.

Big Five Personality

is a model that outlines five broad dimensions of human personality: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Major Depressive Disorder

A mental disorder characterized by a persistent and pervasive low mood accompanied by low self-esteem and loss of interest or pleasure in normally enjoyable activities.

Mood Disorders

Disorders characterized by significant problems with mood and emotion.