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Compute ramirezs present debt-to-equity ratio

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Reference no: EM131819769

Problem

Ramirez Company is considering a project that will require a $500,000 loan. It presently has total liabilities of $220,000, and total assets of $620,000.

(a) Compute Ramirez's present debt-to-equity ratio. (Round your answer to 2 decimal places.)

(b) Compute Ramirez's debt-to-equity ratio assuming it borrows $500,000 to fund the project. (Round your answer to 2 decimal places.)

Reference no: EM131819769

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