Contemplating a change in its capital structure

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Reference no: EM131529740

Various capital structures

Charter Enterprises currently has $1.2 million in total assets and is totally equity financed. It is contemplating a change in its capital structure. Compute the amount of debt and equity that would be outstanding if the firm were to shift to each of the following debt? ratios: 10%?,20%?,30%?, 40%?, 50%?, 60%?, and 90%. ?(Note: The amount of total assets would not? change.) Is there a limit to the debt? ratio's value?

Reference no: EM131529740

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