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Montclair company is considering a project

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Montclair Company is considering a project that will require a $500,000 loan. It presently has total liabilities of $220,000, and total assets of $610,000. 

1. Compute Montclair's 
(a) Present debt to equity ratio 
(b) The debt to equity ratio assuming it borrows $500,000 to fund the project. 
2. Evaluate and discuss the level of risk involved if Montclair borrows the funds to pursue the project.

Reference no: EM13901087

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