Company add or subtract to achieve the target debt ratio

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Reference no: EM131831174

1. MMM Incorporated 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. $155,750

B. $166,688

C. $175,022

D. $183,773

E. $192,962

2. How much must you have saved if the account earns 16% annually if you plan to withdraw $5000 per year for the next 20 years when there is nothing left?

$97,303.80

None of the above

$29,644.20

$576,918.19

$576,898.73

Reference no: EM131831174

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