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Author Question: Beranek Corp. has $520,000 of assets, and it uses no debtit is financed only with common equity. The ... (Read 34 times)

mmmmm

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Beranek Corp. has $520,000 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 55%, using the proceeds from the borrowing to buy back common shares at book value. How much must the firm borrow to achieve the target debt ratio?

$255,460


$264,801


$270,317


$286,000



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Marked as best answer by mmmmm on Aug 7, 2023

AarionnaH

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mmmmm

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Reply 2 on: Aug 7, 2023
Excellent


essyface1

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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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