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Compute montclair present debt-to-equity ratio

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Question - Applying debt-to-equity ratio

Montclair Company is considering a project that will require a $680,000 loan. It presently has total liabilities of $130,000, and total assets of $710,000.

Compute Montclair's (a) present debt-to-equity ratio and (b) the debt-to-equity ratio assuming it borrows $680,000 to fund the project.

Reference no: EM131738600

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